Which of the following represents an action by the Federal Reserve that is designed to increase the money supply?
A. an increase in the discount rate
B. an increase in the required reserve ratio
C. buying government securities in the open market
D. a decrease in federal spending
Answer: C
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In the circular flow model,
A) the government has no direct interaction with either households or firms. B) the government is represented as a separate market. C) the government buys goods and services from firms. D) goods and services are sold by households and purchased by firms. E) factor markets are where goods rather than services are bought and sold.
If supply is perfectly elastic in a consumer goods market, a per unit tax will always be inefficient unless the market demand curve for consumers is perfectly inelastic.
Answer the following statement true (T) or false (F)
In the market for labor, the price of labor is the:
A. number of hours employed per year. B. real wage. C. same as price of the product produced by the labor. D. marginal product of labor.
Approximately what percentage of state and local expenditures do bond referenda account for?
A. 25 percent. B. 50 percent. C. 10 percent. D. Less than 1 percent.