During periods of slow growth, the Federal Reserve will likely
A. decrease the money supply to decrease interest rates.
B. increase the money supply to decrease interest rates.
C. decrease the money supply to increase interest rates.
D. increase the money supply to increase interest rates.
Answer: B
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Which of the following statements is accurate regarding the Building account?
If the Federal Reserve conducts open market sales, the money supply ________, shifting the LM curve to the ________, everything else held constant
A) decreases; right B) decreases; left C) increases; right D) increases; left
Joe's Organic Cereal Company produces granola breakfast cereal under a fixed proportion production system in which 22 ounces of cereal are packaged in each cardboard box
However, the plant production manager decides to reduce the amount of cereal per box to 20.5 ounces at the start of the next year. For the isoquant map, cereal is plotted in the vertical axis, and boxes are on the horizontal axis. What happens to the curves in the isoquant map as a result of this change? A) Shift upward B) Shift downward C) Shift rightward D) Shift leftward
Which of the following will be increased during a contractionary monetary policy?
a. money supply b. the return to saving c. borrowing d. spending