A commercial bank can add to its actual reserves by:
A. lending money to bank customers.
B. buying government securities from the public.
C. buying government securities from a Federal Reserve Bank.
D. borrowing from a Federal Reserve Bank.
D. borrowing from a Federal Reserve Bank.
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Disposable income:
What will be an ideal response?
how do high tariffs and other restraints on international trade affect a nation's prosperity
What will be an ideal response?
Refer to the graph below. What events would tend to temporarily move the economy from point B2 to C2?
A. A tight monetary policy
B. A contractionary fiscal policy
C. An easy money policy
D. An increase in aggregate supply
Suppose the measured unemployment rate is 6.1% and the true natural rate of unemployment is 5.1%. If the chair of the Fed believes the natural rate of unemployment to be 6.7%, then the chair will
A) stimulate the economy when it should be slowed. B) slow the economy when it should be stimulated. C) stimulate the economy, exactly as called for. D) slow the economy, exactly as called for.