Suppose the Fed wants to increase the money supply. The most frequent way used to do this is
a. increase the discount rate
b. decrease the prime rate
c. buy US corporate stock from banks
d. buy US govt bonds from banks
Ans: d. buy US govt bonds from banks
Economics
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The movement of households from rural to urban settings reduced the degree of specialization in household production
a. True b. False
Economics
The GDP gap measures the amount by which:
A. Nominal GDP exceeds real GDP B. Actual GDP exceeds equilibrium GDP C. Potential GDP exceeds actual GDP D. Actual GDP exceeds national income
Economics