If the Fed increases the discount rate, what happens to the money supply?
A. Increases
B. Decreases
C. Stays the same
D. None of these
Answer: B
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Economists consider an economy to be at "full employment" when
A) the unemployment rate equals the natural rate of unemployment. B) there is no structural unemployment. C) there is no frictional unemployment. D) there is only a small amount of cyclical unemployment.
Other things being equal, a higher price induces
A) buyers to reduce the amount they want to buy and sellers to increase the amount they are willing to sell. B) buyers to increase the amount they want to buy and sellers to reduce the amount they are willing to sell. C) buyers to reduce the amount they want to buy and sellers to reduce the amount they are willing to sell. D) buyers to increase the amount they want to buy and sellers to increase the amount they are willing to sell.
The field of economics in which the tools of economics are used to understand the functioning of government is
Negative economic growth in the long-run can be illustrated in Figure 17.1 by
A. Movement from point D to point C. B. An outward shift of the production possibilities curve. C. An inward shift of the production possibilities curve. D. Movement from point B to point D.