If MR

a. increase production
b. decrease production
c. keep the prices constant
d. keep the production level constant

---

b

Economics

When the Federal Reserve wants to slow inflation, it

A) lowers the federal funds rate. B) increases taxes on interest income. C) raises the federal funds rate target. D) increases aggregate income, output, and employment. E) cuts the federal funds rate target aggressively to almost zero.

If the forward exchange rate of the dollar in terms of pounds is less than the spot exchange rate,

A) inflation must be lower in the United States than in Britain. B) inflation must be higher in the United States than in Britain. C) market participants must be expecting the dollar to appreciate against the pound. D) market participants must be expecting the dollar to depreciate against the pound.

Enron executives were charged with numerous counts of corporate fraud and corruption. Among the charges was insider trading, which involves the trading of a corporation's stock by insiders who may have access to information that the public does not. Which role is the government playing when it makes insider trading illegal?

A. Promoting effective and workable competition B. Adjusting for undesirable market results C. Correcting for externalities D. Providing for public goods

Which organization functions as a lender of last resort for national governments?

A. the U.S. Treasury B. the Federal Reserve Bank C. the International Monetary Fund D. the World Bank