During a period of inflation, the Fed is likely to
a. sell government bonds to banks in order to reduce the amount of loanable funds in the market
b. buy government bonds from banks in order to reduce the amount of loanable funds in the market
c. raise taxes in order to reduce the money supply
d. cut the legal reserve requirement in order to reduce the amount of excess reserves banks have to loan out
e. cut the discount rate in order to increase the affordability of loanable funds
A
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During recessions, when some workers lose their jobs and have lower incomes, sales of durable goods (goods with a life expectancy of 3 years or more) decline. Apparently, durable goods are:
A. inferior goods. B. substitutes. C. complements. D. normal goods.
Natural pollutants
a. include such releases as hazardous chemical wastes b. arise from nonartificial processes in nature, such as pollen c. refer to those associated with human activity such as fossil-fuel combustion d. all of the above
If revenue in the short run is less than variable costs, what should the firm do?
What will be an ideal response?
Suppose that X and Y are complementary goods. If the price of good X decreases, we can expect the
a. demand for good X to increase b. quantity demanded of good Y to decrease c. quantity demanded of good Y to increase d. demand for good Y to decrease e. demand for good Y to increase