To decrease the money supply, the Fed can
a. buy government bonds or increase the discount rate.
b. buy government bonds or decrease the discount rate.
c. sell government bonds or increase the discount rate.
d. sell government bonds or decrease the discount rate.
c
You might also like to view...
Government officials facing the challenge of an election will tend to make decisions
A) acceptable to a majority whether or not the majority is informed on the issues. B) expressing the public interest. C) favoring the long run interests of the majority. D) that reflect a high rate of time discount.
If Toyota sells a $1000 bond in the United States, the bond is a
A) foreign bond. B) Eurobond. C) Tokyo bond. D) currency bond.
Regulation that is based on allowing prices to reflect only the actual operating cost of production is known as
A) average cost regulation. B) marginal cost regulation. C) rate-of-return regulation. D) cost-of-service regulation.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.