Government monetary authorities manipulate the supply of money in the economy primarily to:
A. Ensure high profits for commercial banks
B. Provide sufficient currency to individuals and businesses to conduct their daily business
C. Keep the dollar strong measured against the currencies of foreign nations
D. Influence the interest rate and the levels of investment, output, and prices in the economy
D. Influence the interest rate and the levels of investment, output, and prices in the economy
You might also like to view...
In principle, a cap-and-trade program would
A) cause firms to generate more pollution than their allowed limits. B) cause firms to generate less pollution than their allowed limits. C) raise the production costs of all firms. D) lower the production costs of all firms.
Which of the following will always be true when an economy is in long-run equilibrium?
What will be an ideal response?