Which of the following three actions would not be used by the Fed to influence interest rates?
a. selling securities
b. buying stocks
c. setting reserve requirements
d. changing the discount rate
e. moral suasion
B
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A 10% increase in the price of pizza causes a 10% drop in the quantity of both pizza and beer sold. Describe elasticities and the nature of the two products.
a. The price elasticity of demand for pizza is equal to 1 and the cross price elasticity of beer with respect to the price of pizza is also 1. In this example, beer and pizza complements. b. The price elasticity of demand for pizza is equal to 1 and the cross price elasticity of beer with respect to the price of pizza is (-)1. In this example, beer and pizza complements. c. The price elasticity of demand for pizza is equal to (-)1 and the cross price elasticity of beer with respect to the price of pizza is 1. In this example, beer and pizza complements. d. The price elasticity of demand for pizza is equal to (-)1 and the cross price elasticity of beer with respect to the price of pizza is also (-)1. In this example, beer and pizza complements.
As a student of economics, when you speak of scarcity, you are referring to
A) the ability of society to employ all of its resources. B) the ability of society to consume all that it produces. C) the inability of society to satisfy all human wants because of limited resources. D) the ability of society to continually make technological breakthroughs and increase production.
By specializing in the production of particular goods, a nation is:
A) less likely to make efficient use of available resources. B) more likely to engage in international trade. C) able to become self-sufficient. D) unable to develop a comparative advantage.
the combination of price level and real output that is compatible with both aggregate demand and aggregate supply
What will be an ideal response?