Which of the following is the most effective tool used by the Fed?
a. Converting state-chartered banks to nationally-chartered banks
b. Shifting deposits from one District Fed to another
c. Producing currency to increase the money supply
d. Using the federal funds market
e. Open market operations
E
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Which of the following would have the biggest payoff?
A) increasing the Okun Gap B) restoring real GDP growth to its 1960s growth rate C) making the Okun Gap equal the Lucas Wedge D) eliminating the Okun Gap E) increasing the Lucas Wedge
Assume the government is concerned about the high price of Atlantic Red Crab and announces that it is going to shorten the fishing season to one week
What impact will this have on the quantity of crab caught and the price of crab? Will this actually result in greater protection of the Atlantic Red Crab?
If the income multiplier is 4, then 0.5 is equal to the marginal propensity to consume
Indicate whether the statement is true or false
If the required reserve ratio is 10 percent, a $100 deposit will ultimately allow the banking system to create how much money?
A. $190. B. $90. C. $1,000. D. $100.