Which of the following combinations would not produce conflicting effects on the supply of money?
a. The Fed pays a higher interest rate on bank reserves and increases the required reserve ratio
b. The Fed conducts an open market purchase and lowers the discount rate.
c. The Fed pays a higher interest rate on bank reserves and conducts an open market sale of government securities.
d. None of the above would produce conflicting effects on the supply of money
b
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Refer the above figure. Stage "1" of the economy is called
A) the top. B) the peak. C) the trend. D) the climax.
Under a gold standard, as trade takes place and the foreign exchange market is affected, ______ tend(s) to restore equilibrium.
A) a change in the interest rate B) gold flows between nations C) currency flows D) changes in the value of gold
Refer to the above figure. Suppose the economy is in equilibrium at point A. If rational expectations exist, an increase in aggregate demand caused by an anticipated increase in the money supply will cause the economy to
A. stay at point A. B. move to point B. C. move to point C. D. move to point D.
The notion of utilitarian justice is that
A. income should be distributed so that the well-being of the worse-off member of society should be maximized. B. income should be distributed according to an individual's needs. C. any change that makes some people better off without making anyone worse off should be undertaken. D. through income redistribution, the rich sacrifice a little and the poor gain a lot.