Suppose the Federal Reserve wants to decrease the money supply by $100,000 . If the required reserve ratio is 0.1, which of the following actions will achieve the Fed's goal?
a. The Fed must purchase $100,000 in bonds.
b. The Fed must sell $100,000 in bonds.
c. The Fed must purchase $10,000 in bonds.
d. The Fed must sell $10,000 in bonds.
e. The Fed must sell $90,000 in bonds.
D
Economics
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Special interests are most likely to be effective at _____
a. the federal level b. the state level c. and the county level d. at the city level
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Which of the following statements is correct?
a. As a group, economists see no purpose in distinguishing between the nominal interest rate and the real interest rate. b. The interest rate that is usually reported is the nominal interest rate. c. If the nominal interest rate increases and the inflation rate remains unchanged, then the real interest rate decreases. d. All of the above are correct.
Economics