Raises the discount rate and the reserve requirement

Assignment Help Business Economics

Reference no: EM13978567

If the Fed simultaneously raises the discount rate and the reserve requirement, the money supply will:

1. contract.

2. remain unchanged.

3. expand.

4. take on a value that cannot be determined from the information given.

Reference no: EM13978567

Questions Cloud

About the multi-part pricing : Multi-Part Pricing: In the town of Oz, there are two types of tennis players: wizards and imps. Wizards and imps do not socialize, so it would be impossible to start a tennis club that both types would join. Which clientele would you like to attract ..

What are the likely consequences of such a policy : A new Fed governor argues during FOMC meetings that the Fed has not sufficiently achieved the goal of helping the economy reach its potential level of output. She asks the committee to be more aggressive, using expansionary monetary policy to increas..

The economics of labor markets : Why would an employer be reluctant to hire a person for a job that entailed a considerable amount of specific on-the-job trainning if the person had a high probability of leaving the firm after a year of two? How can this help explain the flatter age..

Depletion charge using the percentage depletion method : What is the allowable depletion charge using the percentage depletion method for year 1 only of the salt mine investment described below. The applicable rate for the percentage depletion method is 10%. Cost to acquire mine rights = $30,000

Raises the discount rate and the reserve requirement : If the Fed simultaneously raises the discount rate and the reserve requirement, the money supply will:

Variable cost to produce-the range of production of the firm : A firm makes and sells a computer for $1000. The variable cost to produce. A computer, for the range of production of the firm, is $300 per unit. The total fixed cost per year to make the computer are $4.0 million. How many computers must me made and..

Firms production function-what is short run cost function : A firm's production function is q = K^2L where q is the quantity produced, K is the amount of capital used, and L is the amount of labor used. w is the wage rate of labor and r is the rental rate of capital.

If unexpected inflation does not exist : If unexpected inflation does not exist

Should this firm continue to operate in the short run : Assume a perfectly competitive firm is currently producing 5,000 units of output and is earning $15,000 in total revenue. The marginal cost of the 5,000th unit of output is $3. The corresponding average total cost is $3.50 and total fixed costs equal..

User Account

All Pages