The tools of monetary policy for altering the reserves of commercial banks are the:
a. Tax rate and level of government spending
b. Public debt, budget surplus, and budget deficit
c. Discount rate, reserve ratio, and open-market operations
d. Consumer price index and unemployment rate
c. Discount rate, reserve ratio, and open-market operations
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Producing where marginal revenue equals marginal cost is equivalent to producing where
A) total revenue is equal to total cost. B) total profit is maximized. C) average fixed cost is minimized. D) average total cost equals average revenue.
Which of these variables is not a variable in the equation for the asset market equilibrium condition?
A) Saving B) Expected rate of inflation C) Real interest rate D) Real income
A "war on drugs" is waged, and, as a result, a larger quantity of drugs flowing into the United States is seized and more drug traffickers are arrested. If demand for drugs is relatively elastic, one would expect the total expenditure on drugs to: a. decrease
b. increase. c. stay constant. d. There is not enough information available to make a determination.
The rule of 72 implies that a country with a growth rate of 6 percent will double its income in about:
A. 8 years. B. 16 years. C. 12 years. D. 6 years.