If there is a recession, the Fed would most likely:
a. increase bank reserves by raising the discount rate.
b. increase bank reserves by buying government securities.
c. decrease bank reserves by raising the discount rate.
d. decrease bank reserves by selling government securities.
e. decrease bank reserves by lowering the legal reserve requirement.
b
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On the day of delivery
A) the spot price will equal the futures price. B) the spot price will be greater than the futures price by an amount equal to the current interest rate times the futures price. C) the futures price will be greater than the spot price by an amount equal to the current interest rate times the spot price. D) there is no necessary relation between the spot price and the futures price.
When business leaders become pessimistic about future sales and profits and increase their spending on plant and equipment, their expectations are usually fulfilled
a. True b. False Indicate whether the statement is true or false
The fundamental cause of monopolies is barriers to entry
a. True b. False Indicate whether the statement is true or false
The shift of the short-run aggregate-supply curve from SRAS1 to SRAS2
a. causes the economy to experience an increase in the unemployment rate. b. causes the economy to experience stagflation. c. could be caused by an outbreak of war in the Middle East. d. could be caused by a decrease in the expected price level.