Which monetary policy would most likely increase aggregate demand?
a. Increasing the discount rate
b. Increasing margin requirements on stock purchases
c. Increasing reserve requirements at commercial banks and thrift institutions
d. Purchasing government securities in the open market
d. Purchasing government securities in the open market
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It's not unusual for strangers driving through a small town to find a gas station more quickly than people driving through a major city center
According to the economic way of thinking, gas stations in city centers appear few and far between because A) big cities are just plain confusing to out-of-towners. B) the real estate space available for gas stations has more valuable alternative uses. C) the opportunity cost of placing additional gas stations in city centers is too low. D) the owner of gas stations would rather have people drive further distances and thereby use more gasoline.
Changes in liquidity in the banking system affect ________
A) the nominal interest rate B) the real interest rate C) the federal funds rate D) all of the above E) none of the above
Marginal factor cost is computed as
A) total cost of the resource/total amount of the resource being used. B) change in the total cost of the resource/total amount of the resource being used. C) total cost of the resource/change in the amount of the resource being used. D) change in the total cost of the resource/change in the amount of the resource being used.
One key purpose of economic regulation is
A. to force a firm to produce at the point at which marginal cost equals marginal revenue. B. to control the quality of service provided by a monopolist. C. to focus on the impact of production on the environment and society, the working conditions under which goods and services are produced, and sometimes the physical attributes of goods. D. to control the price that regulated enterprises are allowed to charge.