The demand for reserves curve in the federal funds market is
A) horizontal.
B) vertical.
C) upward sloping.
D) downward sloping.
D
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Which of the following involved deregulation?
a. Airline Deregulation Act of 1978. b. Staggers Rail Act of 1980. c. Motor Carrier Act of 1982. d. All of these.
If unemployment is the major problem in the economy, which of the following would be an appropriate monetary policy response?
a. decrease taxes b. decrease the discount rate c. sell government bonds d. all of the above
Under a system of flexible exchange rates, a decrease in the demand for a country's currency on the foreign exchange market will: a. cause the country's currency to depreciate in value
b. cause the country's currency to appreciate in value. c. make the country's goods more expensive to foreigners. d. make foreign goods less expensive to the country's citizens.
If the U.S. government decided to pay off the national debt by creating money, what would be the most likely effect?
a. a substantial reduction in real GDP b. a deflationary collapse c. rapid inflation d. an increase in the trade surplus