To reduce the money supply, the Fed can ______.

a. buy bonds
b. raise reserve requirements
c. lower the discount rate
d. decease the interest rate paid on reserves


b. raise reserve requirements

Economics

You might also like to view...

Refer to Figure 2-4. Consider the following movements:

a. from point V to point W b. from point W to point Y c. from point Y to point Z Which of the movements listed above represents advancements in technology with respect to both plastic production and food production? A) b and c only B) a, b, and c C) c only D) b only

Economics

If a firm hires labor for $8,000, pays rent of $4,000, buys raw materials for $13,000 from another firm, earns profits of $1,200, and sells its output for $31,000, the value added by the firm is _____

a. $4,800 b. $10,000 c. $18,000 d. $25,000 e. $26,200

Economics

Demand is said to be ___________ when the quantity demanded is very responsive to changes in price.

a. elastic b. unit elastic c. inelastic d. independent

Economics

CARFAX is a company that compiles and sells histories of used cars. Used car dealers offer to give their customers a copy of the CARFAX history of the cars in their inventory to:

A. give buyers additional information about used cars for sale. B. give sellers additional information about used cars for sale. C. cause adverse selection. D. avoid having to offer warranties.

Economics