When the Fed wishes to decrease the money supply it can
a. ask people to buy more bonds.
b. turn additional funds over to the Treasury.
c. increase the required reserve ratio.
d. decrease the required reserve ratio.
c
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For most practical matters, economists assume that
A) individuals are risk neutral. B) individuals are risk lovers. C) individuals are risk averse. D) most individuals are risk lovers. E) most individuals are risk neutral.
Which of the following would shift the short-run Phillips curve to the left?
a. a positive supply shock b. an increase in inflationary expectations c. an negative supply shock d. either (a) or (c)
Most economists think that, in the short run, there is
a. a trade-off between inflation and unemployment, but not in the long run. b. no trade-off between inflation and unemployment, nor is there one in the long run. c. a trade-off between inflation and unemployment, and in the long run also. d. no trade-off between inflation and unemployment, but there is one in the long run also.
U.S. imports are:
A. U.S. goods sold to Americans. B. U.S. goods sold to foreigners. C. Foreign and U.S. goods sold to foreigners, but consumed in the U.S. D. Foreign goods bought by Americans.