To increase the money supply using the reserve requirements, what would the Fed typically do?
A. increase the reserve requirement for banks
B. reduce the reserve requirement for banks
C. make each bank set its own reserve levels
D. let each bank get more currency from the Treasury
Answer: B
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Conditional input demand curves always slope down, but unconditional input demand curves can slope up.
Answer the following statement true (T) or false (F)
Which of the following varies along a given demand curve?
a. consumer preferences b. prices of substitutes c. prices of complements d. the price of the good itself e. income
If a quota is imposed on the import of a good that has a lower price in the domestic market than in the world market, a surplus occurs in the market for the good
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. The quantity or supply of land resources available to a nation is pretty much fixed and cannot increase over time. 2. Entrepreneurship refers to a new college graduate who is looking for a job with a large company. 3. If economic resources were perfectly adaptable to alternative uses, then there would be constant opportunity costs along the production possibilities curve. 4. If the marginal benefits are greater than the marginal cost of an activity, then society should allocate fewer resources to this activity.