Which of the following would be the result of increasing the money available for banks to lend?
A. An increase in the reserve requirement
B. A decrease in the Fed's holdings of U.S. Treasury securities
C. An increase in the discount rate
D. A decrease in the federal funds rate
Answer: D
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An inferior good is ordinary:
a. always. b. if the substitution effect exceeds the income effect. c. if the income effect exceeds the substitution effect. d. never.
When a government has a budget surplus, the surplus
A) helps finance investment. B) crowds-out private saving. C) must be subtracted from private saving to get total saving. D) increases the world real interest rate.
The demand for firewood is likely to be more elastic in the summer than in the winter
a. True b. False
Consider a society facing the production possibilities curves in the figure shown. What is the most likely cause of a society moving from PPF1 to PPF3?
A. More workers
B. Better printing press technology
C. A desire to read more books
D. Better sewing technology