If the Fed is concerned about inflation, it should:
A. buy bonds or raise the discount rate.
B. buy bonds or reduce the discount rate.
C. sell bonds or raise the discount rate.
D. sell bonds or reduce the discount rate.
C. sell bonds or raise the discount rate.
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Deficits financed by borrowed money lead to inflation, and in a fixed or crawling peg exchange rate system, this leads to the real exchange rate being undervalued
Indicate whether the statement is true or false
Automobile manufacturers often use incentive programs, including special financing rates and cash rebates, to increase sales. However, a customer is usually restricted to choosing either the low financing rate or the rebate, but not both
Is this an example of price discrimination? If so, what type? Explain your reasoning.
According to Adam Smith, individual self-interest
a. is a powerful force for economic progress when it is directed by competitive markets. b. is a powerful force for economic progress when individuals are wisely directed by a strong central government. c. is a major factor in retarding the economic progress of humankind. d. could be either a positive or negative force for economic progress, depending on the moral influences of political leaders.
Government attempts to offset market failures can prevent the market from dealing with a problem more effectively.
Answer the following statement true (T) or false (F)