The Fed can decrease the money supply by
a. decreasing the reserve requirement
b. making open market purchases of bonds
c. selling government bonds
d. destroying printed currency
e. creating wealth
C
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How did the European single currency evolved?
What will be an ideal response?
Following the economic crisis in 1994-1995, the Mexican peso fell sharply in value. What will be the main economic effects in Mexico of such an exchange rate change?
a. It will decrease aggregate demand and aggregate supply, so that output will certainly fall, and prices may fall as well. b. It will increase aggregate demand and aggregate supply, so that output will certainly rise, and prices may rise as well. c. It will increase aggregate demand and decrease aggregate supply, so that prices will certainly rise and output may rise as well. d. It will decrease aggregate demand and increase aggregate supply, so that prices will certainly fall and output may fall as well.
The United States experienced the lowest rate of productivity growth during the
A. 1950's. B. 1960's. C. 1970's and 1980's. D. 1990's and 2000's.
The higher the reserve requirement, the lower the money multiplier.
Answer the following statement true (T) or false (F)