Which of the following policies would be most likely to reduce the rate of inflation?
a. sale of government bonds by the Federal Reserve
b. a reduction in the discount rate
c. an increase in the size of the federal budget deficit
d. a reduction in the required reserves imposed on the banking system
a
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Suppose that a pure monopoly calculates that at its present output level, marginal revenue is $1 and marginal cost is $2. The monopoly could maximize profits or minimize losses by ________.
A. increasing price and decreasing output B. increasing price and increasing output C. leaving price unchanged and decreasing output D. decreasing price and leaving output unchanged
Suppose coffee prices, gasoline prices, and concert ticket prices are all sharply higher this year compared to last year. The economy is experiencing
A) disinflation. B) deflation. C) inflation. D) possibly A, B, or C above.
The nominal interest rate is determined in the:
A. stock market. B. money market. C. exchange market. D. bond market.
One organization in the United States today that is exempt from antitrust laws is
A) the automobile industry. B) professional baseball. C) the oil industry. D) the steel industry.