If the Federal Reserve wants to increase the availability of money and credit, it can:
A. lower the discount rate.
B. raise the reserve requirements.
C. sell U.S. government bonds to the public.
D. encourage banks to increase their prime lending rate.
Answer: A
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Which of the following industries was not among the 10 leading industries in 1860?
a. boots and shoes b. printing and publishing c. machinery d. lumber
If the labor market is perfectly competitive the wage rate will be less than the marginal revenue product of labor
a. True b. False Indicate whether the statement is true or false
If an unanticipated increase in aggregate demand results in an output beyond the economy's long-run capacity, long-run equilibrium will eventually be restored by
a. an increase in the economy's productive capacity (LRAS shifts to the right). b. higher resource prices, an increase in SRAS, and a decrease in the general level of prices. c. higher resource prices, a decrease in SRAS, and an increase in the general level of prices. d. a decrease in the natural rate of unemployment.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.