Which of the following monetary policies raises aggregate demand and output?
A. An open market sale of government securities
B. A cut in the reserve requirement
C. An increase in the federal funds rate
D. An increase in the discount rate
Answer: B
You might also like to view...
If resources are underemployed, then the economy is producing as much as possible
Indicate whether the statement is true or false
C = a + bY is a form of the consumption function where a is
a. the consumption function, b is the marginal propensity to consume, and Y is national income b. the marginal propensity to consume, b is the consumption function, and Y is national income c. the marginal propensity to consume, b is autonomous consumption spending, and Y is national income d. autonomous consumption spending, b is the marginal propensity to consume, and Y is national income e. autonomous consumption spending, b is the consumption function, and Y is consumption spending
When two goods are perfect substitutes, the marginal rate of substitution
a. is constant along the indifference curve. b. decreases as the scarcity of one good increases. c. increases as the scarcity of one good increases. d. changes to reflect the consumer's changing preferences for the goods.
Even-handed enforcement of contracts fuels economic prosperity because it
What will be an ideal response?