When the Fed wants to raise interest rates after banks have accumulated large amounts of excess reserves, it would
A) increase the interest rate paid on excess reserves.
B) increase discount rate.
C) increase the required reserve ratio.
D) conduct massive open market purchase.
A
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There is no trade-off between efficiency and equality.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.
Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Figure 6.5Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases while the price of the goods are unchanged, her new budget constraint could be
A. CD. B. BD. C. AD. D. Her new possible budget constraint is not shown on this graph.
A positive externality exists when the actions of one party impose benefits on a second party.
Answer the following statement true (T) or false (F)