Contractionary monetary policy by the Fed could include
A) lowering the discount rate.
B) decreasing government transfer payments.
C) decreasing reserve requirements.
D) selling government securities in the open market.
Ans: D) selling government securities in the open market.
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In the neoclassical growth model without technological progress, in the steady-state the level of capital increases at
a. the growth of technology plus the growth of population. b. the growth of technology plus the growth of population plus depreciation. c. the growth of technology. d. the growth of population.
The fact that a gallon of gasoline commands a higher market price than a gallon of water indicates that:
A. gasoline is an economic good but water is not. B. the marginal utility of gasoline is greater than the marginal utility of a gallon of water. C. the average utility of a gallon of gasoline is greater than the average utility of a gallon of water. D. the total utility of gasoline exceeds the total utility of water.