Which of the following tools of monetary policy is flexible and able to affect bank reserves quickly and by relatively specific amounts?
A. The discount rate.
B. The reserve ratio.
C. Open-market operations.
D. The federal funds rate.
C. Open-market operations.
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Consider an economy where the growth rate of real GDP is 6% and the growth rate of money supply is 8%. If the quantity theory of money holds, the inflation rate in the economy will be:
A) 8%. B) 6%. C) 2%. D) 14%.
Refer to the information provided in Figure 33.2 below to answer the question(s) that follow.
Figure 33.2Refer to Figure 33.2. The opportunity cost of 1 ________ is 0.25 ________ in the United States and 0.67 ________ in England.
A. car; truck; truck B. truck; truck; car C. truck; car; car D. car; car; truck
The most important determinant of the level of consumption is ______________.
Fill in the blank(s) with the appropriate word(s).
An anticipated change in the money supply will result in a(n) __________ level of economic activity and a __________ price level
A) increased; higher B) decreased; higher C) unchanged; lower D) unchanged; higher