If the Federal Reserve wished to engage in contractionary monetary policy, it could
A. lower the reserve ratio.
B. lower the Federal Funds rate target.
C. increase the primary credit rate.
D. purchase government debt.
Answer: C
You might also like to view...
Refer to the above figure. Which of the graphs is consistent with the Keynesian short-run aggregate supply curve?
A) Graph A B) Graph B C) Graph C D) Graph D
Which of the following is not an advantage of the corporate structure over proprietorship and partnership forms of business organization?
a. Stockholders in the corporation have limited liability, whereas proprietors or partners have unlimited liability. b. Ownership rights of a corporation may be transferred more easily. c. Large investment funds are more easily attracted by the corporation. d. Corporations are less likely to suffer from the principal-agent problem.
What is the best way to ensure that individuals with pre-existing health conditions have access to affordable insurance coverage?
a. Place everyone in the same risk pool and charge everyone, sick and healthy, the same community-rated premium. b. Place those with pre-existing conditions into separate risk pools, charging them risk-rated premiums, and provide taxpayer financed subsidies to make the coverage affordable. c. Mandate that every provider accept individuals with pre-existing conditions on a pro bono basis and subsidize the cost of their care by charging higher prices to those with insurance. d. Allow those individuals with pre-existing conditions to purchase insurance based on their own health status.
Why is the value of leisure listed as a shortcoming in the measurement of GDP?
A. When households take time off for leisure, the activity is not counted in GDP. However, taking time off for leisure makes households better off. B. Because GDP increases when households take more leisure. C. Because leisure increases happiness only when we take a vacation with it. D. Because households really want to work every day, and leisure gets in the way of work.