Which of the following is an appropriate monetary policy if the Fed wants to increase the money supply?
a. An increase in the required reserve ratio.
b. An increase in the discount rate.
c. Purchases of bonds in open market operations.
d. Higher taxes on interest income.
c
You might also like to view...
Most economists believe that price indices
A) understate inflation and understate growth in real GDP. B) understate inflation and understate growth in nominal GDP. C) overstate inflation and understate growth in real GDP. D) overstate inflation and understate growth in nominal GDP.
Risk taking
A. is economically wasteful. B. is a cause of income inequality. C. is not a cause of income inequality. D. evens out income inequality because of the bell curve.
Which of the following antebellum transportation innovations earned the greatest rate of return?
a. corporate-owned turnpikes b. the National Road c. the Erie Canal d. the Mainline Canal
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. If Tom divides his time evenly between activities and acts efficiently, he will produce:
A. 16 dishes and 4 fences. B. 12 dishes and 3 fences. C. 8 dishes and 2 fences. D. 4 dishes and 3 fences.