Refer to Figure 6-10. The supply curve on which price elasticity changes at every point is shown in

Whenever income is less than expenditure for a period of time, a nation will experience:

A) a deficit in its current account B) A surplus in its current account C) A fall in GDP D) None of the above

Which of the following policy tools is directly controlled by the Trading Desk at the Federal Reserve Bank of New York?

A) the spread between the discount rate and the federal funds rate B) the spread between the federal funds rate and the interest rate on banks' required reserves C) open market sales and purchases D) the required reserve ratio