If the Fed wishes to decrease the money supply, it could:
A. print less currency.
B. increase the reserve requirement.
C. buy bonds.
D. decrease the discount rate.
Answer: B
You might also like to view...
GDP may inaccurately measure the value of aggregate output because it may not properly account for
A) production in the underground economy and the true value of government production. B) the true value of government production and the proper value of purchases and sales of used goods. C) the proper value of purchases and sales of used goods and depreciation of consumer durables. D) the depreciation of consumer durables and production in the underground economy.
A supply curve reveals:
A) the quantity of output consumers are willing to purchase at each possible market price. B) the difference between quantity demanded and quantity supplied at each price. C) the maximum level of output an industry can produce, regardless of price. D) the quantity of output that producers are willing to produce and sell at each possible market price.
When the actual inflation rate rises more rapidly than nominal wage rates, we would expect the short-run aggregate supply curve to shift to the right
a. True b. False Indicate whether the statement is true or false
Which of the following would advocate increasing government spending on welfare programs during a recession?
a) Supply-side economists. b) Classical economists. c) Monetarists. d) Keynesians.