What actions should the Fed take if it believes the economy is about to fall into recession?
What will be an ideal response?
If the Fed believes the economy is about to fall into recession, it should conduct expansionary monetary policy, increasing the money supply and reducing interest rates. In implementing expansionary monetary policy, the Fed could lower the discount rate, lower the reserve requirement, and/or have the trading desk purchase U.S. Treasury securities.
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The following are hypothetical exchange rates: $1 = 140 yen; 1 Swiss franc = $0.10. We can conclude that ________.
A. 1 yen = 14 Swiss francs B. 1 yen = 280 Swiss francs C. 1 Swiss franc = 14 yen D. 1 Swiss franc = 28 yen
Which act of Congress extended the government's authority to block horizontal and vertical mergers?
a. Clayton Act. b. Sherman Antitrust Act. c. Celler-Kefauver Act. d. Robinson-Patman Act.
The export supply and import demand curves measure the domestic shortage and surplus, respectively, at different world prices
a. True b. False Indicate whether the statement is true or false
Refer to Figure 2.4. The elasticity of demand at point a is given by:
A. the slope of line cd times (P1/Q1).
B. the slope of line ab times (Q1/P1).
C. the inverse of the slope of line cd times (P1/Q1).
D. the inverse of the slope of line ab times (Q1/P1).