Other things equal, if the Fed increases the discount rate,
A) the monetary base will decrease and the money supply will remain constant.
B) the monetary base and the money supply will both decrease.
C) the money supply will decrease and the monetary base will remain constant.
D) the monetary base will decrease and the money supply may increase or remain constant.
B
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A typical IMF stabilization package involves
(a) erecting barriers against foreign investment. (b) overvaluing the exchange rate. (c) liberalization of exchange controls. (d) a reduction in interest rates. (e) all of the above.
Unemployment benefits create(s) which of the following?
a. less unemployment b. incentives for people to quickly find work c. incentives for employers to hire people d. incentives for people to not work
An increase in the price of product A will:
A. increase the marginal utility per dollar spent on A. B. decrease the marginal utility per dollar spent on A. C. not affect the marginal utility per dollar spent on A. D. cause utility-maximizing consumers to buy more of A.
If the quantity of glazed donuts demanded increases by 6% when the price of cinnamon rolls increases by 9%, the cross-price elasticity of demand between glazed donuts and cinnamon rolls is
A. -1.5. B. -0.33. C. 0.67. D. 1.5.