Which of the following is the most frequently used tool the Fed uses to control the supply of money?
a. The discount rate. b. The reserve requirements.
c. Open market operations. d. The 30-year home-mortgage interest rate.
c
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The precautionary demand for holding money arises because
A) people want be able to make unexpected purchases or to meet emergencies. B) credit cards charge low interest rates, which makes money more attractive than credit. C) expected transactions are completed more easily with debit cards than with credit cards. D) people would rather hold money in the form of time deposits than in the form of hard currency.
Veruca sells therapeutic bath salts on the Internet. Her annual revenue is $52,000 per year, the explicit costs of her business are $14,000, and the opportunity costs of her business are $17,000 per year. What is her accounting profit?
A) $14,000 B) $21,000 C) $31,000 D) $38,000
The labor supply curve(s) will shift left if there is a decrease in wages.
Select whether the statement is true or false. A. True B. False
Which of the following would not result from all countries specializing according to the principle of comparative advantage?
a. The size of the economic pie would increase. b. Worldwide production of goods and services would increase. c. The well-being of citizens in each country would be enhanced. d. Each country's production possibilities frontier would shift inward.