Which of the following would be most appropriate if the Federal Reserve wanted to increase the money supply in order to stimulate the economy?
A. Buy U.S. government securities.
B. Force the Treasury to reduce the national debt.
C. Raise the discount rate.
D. Increase the reserve requirements.
Answer: A
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Money is best defined as
A) anything that can be sold to pay for something. B) currency. C) anything that is backed by gold. D) anything accepted as a means of payment. E) anything that has value.
The above figure shows the U.S. market for chocolate. With international trade, consumer surplus is equal to
A) area A + area B + area C + area D. B) area A. C) area B + area C + area D. D) area C + area D. E) area E.
The theoretical model of the intertemporal budget constraint suggests that the most important factor in support of individual savings is:
a. the preference of the individual. b. a higher rate of return on savings. c. an increase in income. d. a decrease in the cost of living.
According to Baumol and Blinder, recognition of the usefulness of markets
a. labels a person as an apologist (defender) of capital. b. extends to some socialist countries, for example, China. c. should make totally free markets good for any society. d. makes one a radical.