To offset the effect of households and firms deciding to hold less of their money in checking account deposits and more in currency, the Federal Reserve could
A) raise the discount rate. B) buy Treasury securities.
C) raise the required reserve ratio. D) lower bank taxes.
B
You might also like to view...
Which of the following is true of two stage least squares estimators?
A. The two stage least squares estimator is equal to the instrumental variable estimator if R2 is equal to 1. B. The two stage least squares estimators are biased if the regression model exhibits multicollinearity. C. The two stage least squares estimators have lower variance than the ordinary least squares estimators. D. The two stage least squares estimators have large standard errors when R2 lies close to 0.
Derived demand is a demand for
A. final goods and services. B. products. C. resources. D. goods produced by perfect competitors.
Which of the following will occur if the aggregate quantity supplied is less than the aggregate quantity demanded?
A. Aggregate demand will shift to the right B. Aggregate supply will shift to the left C. There will be a shortage D. There will be a surplus
In order to derive an individual's demand curve for salmon, we would observe what happens to the utility-maximizing bundle when we change
A) income and hold everything else constant. B) tastes and preferences and hold everything else constant. C) the price of the product and hold everything else constant. D) the price of a close substitute and hold everything else constant.