In times of recession, to encourage banks to provide loans in the economy, the Fed will
a. raise the legal reserve requirement
b. raise the margin requirement
c. cut taxes and increases government spending
d. lower the discount rate
e. buy stock on the federal funds market
D
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Why do policymakers sometimes use policies to limit growth?
What will be an ideal response?
In a diagram with the total cost curve and the total variable cost curve, as output increases, the vertical distance between these two curves
A) is constant. B) decreases. C) increases. D) gets smaller and then bigger again.
If Texans decrease their purchases of Mexican beer, assuming all else remains constant, this will ________ of the United States
A) decrease the financial account balance B) decrease net exports C) increase the trade deficit D) decrease the current account balance
Suppose the figure shown represents the production possibilities frontier for Country A. Country B offers to trade four trucks for every airplane. Assuming Country A specializes in airplane production, which of the following combinations of goods could Country A consume?
A. (15 airplanes, 20 trucks)
B. (10 airplanes, 20 trucks)
C. (10 airplanes, 30 trucks)
D. (5 airplanes, 20 trucks)