Which of the following policy actions by the Fed is likely to cause the money supply to decrease?
A. An open market purchase
B. A decrease in required reserve ratios
C. A decrease in the discount rate
D. An open market sale
D. An open market sale
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If knowledge possessed by one party in a financial transaction is not known to the other party, ________ exists
A) fraud B) asymmetric information C) disintermediation D) no financial intermediation
When the average product is at its maximum,
A) the marginal product is increasing as output increases. B) the marginal product is negative. C) it is equal to the marginal product. D) total product is also at its maximum. E) total product is at its minimum.
When did the Fed fail to engage in a pre-emptive strike to keep the economy at or near the natural rate of unemployment?
A) 1994 B) 1998 C) 2001 D) None of the above. The Fed acted in each of these years.
Can sales agents, such as realtors, generate economic surplus?
A. Yes, because they help ensure that goods are purchased by consumers who value them the most highly. B. No, because the value of a product is based purely on the cost of producing it and not on who buys it. C. Yes, but only if they work for free, otherwise they are a waste of resources. D. No, because sales agents don't produce anything new.