If the Federal Open Market Committee desired to tighten credit, it would
a. buy securities in the open market.
b. sell securities in the open market.
c. lower the discount rate.
d. raise the discount rate.
b. sell securities in the open market.
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When stockholders receive dividends in proportion to the quantity of stock they own, this is called
a. corporate loss b. preferred stock c. common stock d. retained earnings e. limited liability
Which of the following will discourage investment?
a. well-defined property rights b. monetary instability c. a low and steady rate of inflation d. low tax rates
Virtual currency unit 3 (VCU3) is different from VCU2 because:
a. VCU2 cannot be spent in the real world; VCU3 can be spent in the real world. b. In terms of convertibility, there is no difference; both VCU2 and VCU3 can be purchased with and sold for legal tender. c. VCU3 can directly affect real world demand, whereas VCU2 cannot affect real-world demand. d. In terms of spending potential, there is no difference because neither VCU2 nor VCU3 can be spent in the real world.
Demand is said to be price inelastic when the coefficient of price elasticity of demand is
a. greater than +1 b. between 0 and +1 c. zero d. infinity