If the Fed wanted to increase the money supply, they could:
A. increase the reserve requirement, reducing the reserve ratio.
B. decrease the reserve requirement, reducing the reserve ratio.
C. increase the reserve requirement, increasing the reserve ratio.
D. decrease the reserve requirement, increasing the reserve ratio.
B. decrease the reserve requirement, reducing the reserve ratio.
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Explain the concept of 'lender of last resort'. What is discount rate?
The balance of payments constraint refers to the limits on:
A. exchange rate policy imposed by flexible exchange rates. B. currency convertibility observed in most developing countries. C. domestic macroeconomic policy, arising from a shortage of international reserves. D. macroeconomic policy resulting from IMF conditionality.
Only interest payments account for the majority of total federal spending
a. True b. False Indicate whether the statement is true or false
Most of our environmental problems exist because of
a. a lack of enforced and easily traded property rights. b. consumer ignorance. c. profit maximization on the part of business firms. d. the failure of political officials to regulate business activities.