If the Fed wishes to decrease the money supply it can:
A. Raise the discount rate.
B. Buy bonds on the open market.
C. Decrease the required reserve ratio.
D. Decrease the federal funds rate.
A. Raise the discount rate.
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A persistent decline in the price level resulting from economic growth in the presence of stable aggregate demand is known as
A) secular deflation. B) the interest rate effect. C) the real balance effect. D) demand-side deflation.
Using the data in the table above, the growth rate of real GDP for 2010 is equal to
A) 4.76 percent. B) 10.0 percent. C) 9.09 percent. D) 5.00 percent. E) 7.00 percent.
When the Fed purchases government securities, it:
a. increases banks' reserves and makes possible an increase in the money supply. b. decreases banks' reserves and makes possible a decrease in the money supply. c. automatically raises the discount rate. d. uses discounting operations to influence margin requirements. e. has no effect on either the money supply or the discount rate.
Which of the following ideas of Adam Smith has religious overtones?
A. Comparative advantage B. Aggregate demand C. Perfect competition D. Rational expectations E. Invisible hand