The economy is experiencing inflation and the Federal Reserve decides to pursue a restrictive money policy. Which actions by the Fed would be most consistent with this policy?
a. Selling government securities
b. Buying government securities
c. Lowering the reserve ratio
d. Lowering the discount rate
a. Selling government securities
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A supply curve slopes upwards because
a. the higher the price the lower the quantity that the sellers are willing to supply b. the higher the price the higher the quantity that the sellers are willing to supply c. the quantity supplied in insensitive to price d. an increase in price brings the quantity sold down to zero
One way to potentially work around regulators is the practice of suggesting appointees to the regulatory boards and sending lobbyists to argue with the regulatory boards. What is this practice known as?
a. Regulatory capture b. Price capture c. Cost-plus capture d. Monopoly capture
Microeconomics is concerned with the study of
A) the effects of inflation. B) the effects of government spending. C) the effects on individual producers of higher wages paid to workers. D) aggregates.
When the price of a good decreases more slowly than an index of average prices decreases, the good's relative price
A. Has risen while its actual price has fallen. B. And its actual price has fallen. C. Has fallen while its actual price has risen. D. And its actual price has risen.