If the Fed wants to reduce banks' reserves, it can
a. buy securities in the open market.
b. lower the reserve ratio.
c. lower the federal funds rate.
d. raise the discount rate.
d
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The stronger that consumer demand is for a good or service, other things being equal,
a. the higher its price. b. the lower its price. c. the more stable its price. d. the less stable its price.
Average per-capita GDP in the richest, most prosperous economies is ________ times that of the average in the ________ economies
A) 95, low (poorest) income B) 95, lower-middle income C) 73, lower-middle income D) 44, low (poorest) income E) 69, low (poorest) income
Long-run economic growth can be achieved with
A. Neutral monetary policy. B. Contractionary fiscal policy. C. A rightward shift in the long-run aggregate supply curve. D. A rightward shift in the aggregate demand curve.
Electric generator companies did not raise their prices when there was a huge demand for their products, due to a power shortage. The companies decided against a price rise because they were
A. concerned about peoples' welfare. B. concerned about being sued by consumer activists. C. concerned about political backlash. D. concerned about reputation and future demand.