Suppose the Fed forecasts a reduction in excess reserve holdings by banks. It might offset the effect of this on the money supply by
A) buying government securities.
B) lowering the required reserve ratio.
C) lowering the discount rate.
D) selling government securities.
E) a, b, and c
D
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The above figures show the market for oranges. Which figure shows the effect of a new technology called "the orange picker," which harvests oranges less expensively than ever before?
A) Figure A B) Figure B C) Figure C D) Figure D
Hyperinflation is a period of time when
a. people "hoard" their money. b. the price level explodes and the money supply decreases. c. both the price level and taxes explode. d. inflation is greater than 1,000%. e. the price level rises faster than the money supply.
The largest portion of the M1 money supply consists of
a. coins in circulation. b. paper currency in circulation. c. savings deposits at credit unions. d. checkable deposits.
If we compare the Baby Boom generation of workers to the number of workers who came before and will come after them, we realize that, all other things equal, the Baby Boomer's labor:
A. demand will be relatively lower at any wage. B. demand will be relatively greater at any wage. C. supply will be relatively lower at any wage. D. supply will be relatively greater at any wage.