Suppose the Federal Reserve wants to increase the money supply. Which combination of actions would lead to the appropriate effect?
a. Increase the discount rate, decrease the reserve ratio, sell bonds.
b. Increase the discount rate, decrease the reserve ratio, buy bonds.
c. Decrease the discount rate, decrease the reserve ratio, buy bonds.
d. Decrease the discount rate, increase the reserve ratio, buy bonds.
e. Decrease the discount rate, decrease the reserve ratio, sell bonds.
C
You might also like to view...
Which of the following describes the goal of labor unions?
a. Changing the balance of negotiations between employers and employees b. Lobbying federal, state, and local governments for employee benefits c. Requiring employers to address the needs of individual employees d. Redistributing wages and benefits among union members
Economists use the term "utility" to refer to the usefulness of a good or service, and so consequently aesthetic products like art, music, and vacations have no utility
Indicate whether the statement is true or false
Other things equal, if the fixed costs of a firm were to increase by $100,000 per year, which of the following would happen?
A. Marginal costs and average variable costs would both rise. B. Average fixed costs and average variable costs would rise. C. Average fixed costs would rise, but marginal costs would fall. D. Average fixed costs and average total costs would rise.
A firm where owners are usually not managers and not personally liable for the firm's debts is a
A) sole proprietorship. B) general partnership. C) corporation. D) None of above.