Federal funds rate targets and reserve targets are incompatible when the Federal Reserve wants to
A) expand reserves and lower interest rates.
B) expand reserves and raise interest rates.
C) contract reserves and the money supply.
D) contract reserves and raise interest rates.
B
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Schumpeter asserts all of the following except
(a) A strong middle class fosters growth in society's entrepreneurial base. (b) Entrepreneurs are the leading force behind technological advancement. (c) Invention and innovation are unnecessary in a growing economy. (d) Secured property rights encourage risk-taking entrepreneurial behaviors.
Which of the following statements is correct? I. A drop in the foreign exchange value of the dollar would decrease aggregate demand II. A decrease in the amount of money in circulation would increase aggregate demand
A) I only B) II only C) Both I and II D) Neither I nor II