An example of an expansionary monetary policy is

A) a decrease in the required reserve ratio.
B) the Fed selling bonds in the open market.
C) an increase in the required reserve ratio.
D) a law placing a ceiling on the maximum interest rate that banks can pay to depositors.


Answer: A) a decrease in the required reserve ratio.

Economics

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If Bonnie can produce either 10 hats or 20 scarves in a month, and Phil can produce either 5 hats or 10 scarves in a month then

A) Bonnie is more efficient at producing hats, compared to Phil. B) Bonnie is more efficient at producing scarves, compared to Phil. C) both A and B above are true. D) none of the above is true.

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What are the effects on a market when there is entry?

What will be an ideal response?

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Knowledge is human capital plus business know-how.

Answer the following statement true (T) or false (F)

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Existing firms in the rental car industry will stay in the industry but will not want to undertake any investment projects other than to replace depreciating capital stock if the normal rate of return in the industry is ________ and the return that firms earn in this industry equals exactly ________.

A. 6%; 6% B. 4%; 7% C. 1%; 2% D. 12%; 9%

Economics