Which of the following policies by the Federal Reserve is likely to decrease the money supply?
A. Reducing reserve requirements
B. Selling government bonds
C. Decreasing the discount rate
D. None of these
Answer: B
You might also like to view...
What is the relationship between net exports, the government sector surplus or deficit, and the private sector surplus or deficit?
What will be an ideal response?
Consider the graph. What would most likely be the cause of a shift from D1 to D2?
A. A tax on sellers
B. A tax on buyers
C. A subsidy for sellers
D. A subsidy for buyers
In order for someone to switch from borrowing to saving when the interest rate falls, it must be that current consumption is an inferior good.
Answer the following statement true (T) or false (F)
If output is set at the kink of the kinked-demand model, then there:
A. is a strong incentive for rivals to decrease prices. B. is a strong incentive for rivals to increase prices. C. are several prices at which marginal revenue equals marginal cost. D. is one price at which marginal revenue equals marginal cost.