If there is a recession, the Fed would most likely:
A. increase bank reserves by raising the discount rate.
B. increase bank reserves by buying government securities.
C. decrease bank reserves by raising the discount rate.
D. decrease bank reserves by selling government securities.
Answer: B
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Nominal GDP is measured by calculating real GDP at constant prices
Indicate whether the statement is true or false
Refer to Figure 16-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely pursue
A) contractionary fiscal policy. B) expansionary monetary policy. C) expansionary fiscal policy. D) expansionary automatic stabilizers. E) contractionary monetary policy.
If the money wage and other resource prices do not change when the price level rises by 10%...
What will be an ideal response?
A durable good
A. is used up within 3 years. B. has a life span of more than 3 years. C. is an intangible commodity. D. has an infinite life span.