If the Federal Reserve Banks goal was to use open market operations to expand the economy it could move from:
A. MS1 to MS3
B. MS3 to MS2
C. MS4 to MS3
D. MS2 to MS1
A. MS1 to MS3
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A bank reports reserves of $100,000, government securities of $50,000, loans of $750,000, and checkable deposits of $900,000. The desired reserve ratio is 10 percent. What is the amount of excess reserves for this bank? Show your work
What will be an ideal response?
Refer to the above figure. Ajax and Greenco are oligopolists. Above you are given the payoff matrix for the two firms giving the payoff associated with different pricing strategies. What is the dominant strategy for Greenco?
A) high price B) low price C) There is no best strategy. D) Not enough information is given to determine the best strategy.
Data on output and planned aggregate expenditure in Macroland are given below.Output (Y)Planned Aggregate Expenditure (PAE)2,0002,3003,0003,2004,0004,1005,0005,0006,0005,900 Based on these data, the short-run equilibrium level of output is:
A. 4,100. B. 5,000. C. 3,200. D. 2,000.
By raising and lowering the discount rate, the Fed changes the
A. Level of required reserves held by individuals. B. Incentive for banks to borrow reserves. C. Incentive for banks to buy common stock. D. Money multiplier.