The Federal Reserve can increase aggregate demand by:
A. Reducing the money supply
B. Reducing the discount rate
C. Raising the reserve requirement
D. Selling government securities in the open market
B. Reducing the discount rate
You might also like to view...
In the above figure, the short-run equilibrium is at the price level of ________ and real GDP of ________
A) 100; $15.5 trillion B) 120; $16 trillion C) 110; $15.5 trillion D) 100; $16 trillion
Today, few U.S.-based manufacturing firms make their products exclusively in the United States out of entirely U.S.-made parts
Indicate whether the statement is true or false
An export subsidy will cause the relative demand for ________ to ________ and the relative supply for ________ to ________
A) exports; decrease; exports; increase B) imports; decrease; imports; increase C) imports; increase; imports; decrease D) exports; increase; exports; decrease E) exports; increase; imports; decrease
The exchange rate is
a. another term for "interest rate." b. another term for "growth rate." c. the rate at which goods trade for one another across international borders. d. the price of one currency in terms of another currency.