Suppose Trust Bank purchases government bonds worth $55 million. If the bank does not want to reduce its reserves, _____
a. it should start giving more loans
b. it should stop giving new loans
c. it should raise the discount rate
d. it should lower the minimum required ratio
b
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Explain why having different marginal rates of substitution is necessary for trade to occur
What will be an ideal response?
Supply side inflation can be caused by
A) a continual increase in aggregate supply while aggregate demand remains unchanged. B) a continual decrease in aggregate supply while aggregate demand remains unchanged. C) a continual decrease in aggregate supply while aggregate demand has significant decreases. D) a continual increase in aggregate demand while aggregate supply remains unchanged.
If Argentina imposes a 20 percent tax on natural gas exports to be paid by suppliers. Other things equal, this causes the:
A. supply of natural gas exports to shift to the left. B. supply of natural gas exports to shift to the right. C. quantity of natural gas exports produced to increase. D. demand for natural gas exports to shift to the right.
Refer to the graph below, which shows the market for beef where demand shifted from D1 and D2. The change in equilibrium from E1 to E2 is most likely to result from:
A. A decrease in consumer incomes
B. An increase in the cost of cattle feed
C. An increase in the price of pork
D. A decrease in the tax on beef products