Reserve requirements are changed
A) more frequently than the discount rate is changed, but less frequently than open market operations are conducted.
B) more frequently than the discount rate is changed and more frequently than open market operations are conducted.
C) more frequently than open market operations are conducted, but less frequently than the discount rate is changed.
D) less frequently than open market operations are conducted and less frequently than the discount rate is changed.
D
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Which of the following indifference curves is not possible given the consumer's budget line?
A. U1 B. U2 C. U3 D. U4
For a normal good, does the income effect reinforce the substitution effect or does it partly offset the substitution effect?
What will be an ideal response?
A good generalization about developing countries is
a. savings rates are low b. investment rates are low c. exports are mostly food and raw materials d. population growth rates are high e. none of the above
Assume the economy is initially in equilibrium where potential GDP is greater than real GDP
If the expected inflation rate, the term structure effect, and the default-risk premium are constant, a decrease in the Fed's target short-term nominal interest rate will ________ the MP curve and the output gap will become ________. A) shift up; smaller B) shift up; larger C) shift down; smaller D) shift down; larger