Which of the following policy actions by the Fed would cause the money supply to decrease?
A. an open market purchase of government securities
B. a decrease in required reserve ratios
C. a decrease in the discount rate
D. an open-market sale of government securities
Answer: D
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The market demand for MP3 player is p = 50 - 0.5Q, and the marginal cost for Nick to obtain and sell a MP3 player is $10
If he receives $12 for each MP3 player he sells from the store owner and the store owner controls the quantity of MP3's available for sale, then A) 40 MP3 players will be sold. B) joint profit is $798. C) joint profit will be maximized. D) Nick will sell as many as he can.
Compared to a proprietorship, a disadvantage of a partnership is
A) that profits are taxed twice. B) that it is harder to keep the firm going after the death of an owner. C) unlimited liability. D) that potential liability to each partner is greater.
The number of firms in a perfectly competitive industry is not fixed in the long run.
Answer the following statement true (T) or false (F)
The largest income redistribution programs:
a. are funded solely by highly progressive taxation b. pay benefits mainly to those below the poverty line c. both of the above d. neither of the above