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1. Which of the following would lead to a decrease in the money supply?
A. The Fed lowers the discount rate
B. The Fed sells government securities in the secondary market
C. The Federal government spends less money
D. The Fed lowers reserve requirements
E. Taxes are reduced
2. Currency held by the public…
A. Is not part of the money supply, but currency held by banks is B. Is part of M1 but not M2 C. Is part of the money supply, but currency held by banks is not D. And by banks is part of the money supply E. Or banks is not part of the money supply since it is not included in M1
The price of gasoline has fallen recently which has lowered shipping costs for most of the inputs firms use. Determine how this would affect aggregate demand (AD) and/or short-run aggregate supply (SRAS) and the effect that would have on the aggregat..
Suppose a bank has 100 million dollars of assets to invest. It can either invest in risky or safe loans. Safe loans will be worth $105 M in one year with certainty. Risky loans will be worth either $70 M or $130 M in one year, each with equal probabi..
One month ago, they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they buy another copier or hire another worker?
Why do economists disagree about whether an interest rate target or money supply growth target is the best intermediate policy target for the Fed, and why not target both?
Ben Bernanke, the ex-chairman of the Fed, dubbed the few years preceding the financial crisis of 2007-08 a period of:
Upon graduation, John Jones takes a position as risk manager to ABC Manufacturing which manufactures widgets that are utilized in farm equipment. Unfortunately, ABC Manufacturing has had a long history of significant injuries to its production employ..
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What does central bank independence mean? Which dimensions are included? Politically independent monetary bank is an important prerequisite for currency stability
Idaho farmers can sell as large a quantity of their potato crop as they which,
Explain how much of the tax will the sellers pay. How much will the buyer pay for the product after the tax is imposed.
Which of the following is true regarding tort litigation?
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