What would the federal reserve do when it wants to increase the supply of loanable funds?
a. sell gov't securities
b. increase the reserve requirement
c. increase the discount rate
d. decrease the reserve requirement
Answer: d. decrease the reserve requirement
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According to the mercantilists, colonies were supposed to export ________ and import ________ from _______
a. manufactured products, raw materials, the mother country. b. raw materials, manufactured products, countries outside the empire. c. manufactured products, raw materials, countries outside the empire. d. raw materials, manufactured products, the mother country.
Price elasticity of demand is defined as
a. slope divided by price. b. percentage change in price divided by percentage change in quantity demanded. c. percentage change in quantity demanded divided by percentage change in price. d. the inverse of the price elasticity of supply.