Which of the following policies would be most likely to reduce the rate of inflation?
A. sale of government bonds by the Federal Reserve
B. a reduction in the discount rate
C. an increase in the size of the federal budget deficit
D. a reduction in the required reserves imposed on the banking system
Answer: A
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The income of the household lying at the exact middle of the income distribution is:
a. mean household income. b. median household income. c. modal household income. d. second quintile household income.
Exhibit 8-11 A firm's cost and marginal revenue curves
In Exhibit 8-11, when the price is $2, the profit-maximizing (or loss-minimizing) firm:
A. should shut down and produce zero. B. should produce output equal to 4. C. is making an economic profit of $8. D. should try to produce more output.
________ attempts to reduce negative externalities by ________
A) Negotiation; discovering who has which rights B) Negotiation; creating new rights C) Legislation; creating new rights D) Legislation; discovering who has which rights
In the above figure, as output increases, the distance between curves B and C decreases because
A) total cost decreases as output increases. B) average fixed cost decreases as output increases. C) there are diminishing returns to average total cost. D) there are increasing marginal costs as output increases.