The federal reserve wants to increase the money supply

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Reference no: EM131393606

1. The Federal Reserve wants to increase the money supply. What could they do?

Buy treasury securities, increase discount rate, decrease required reserve ratio

Sell treasury securities, increase discount rate, increase required reserve ratio

Buy treasury securities, decrease discount rate, decrease required reserve ratio

Buy treasury securities, increase discount rate, increase required reserve ratio

Sell treasury securities, decrease discount rate, increase required reserve ratio

2. Which of the following factors will NOT increase the production capacity of the economy (i.e., what will NOT shift the long-run aggregate supply curve to the right)?

Discovery of new natural resources

improvement in technology

change in exchange rate

improvement in human capital

households savings rate increases

3. Money that some authority, generally a government, has ordered to be accepted as a medium of exchange is called _______ money.

a. fiat

b. intrinsic

c. commodity

d. debt

Reference no: EM131393606

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