How could the Federal Reserve encourage banks to lend out more of their reserves?
(A) By raising the required amount of reserves.
(B) By reducing the money supply.
(C) By reducing the discount rate.
(D) By increasing the prime rate.
Ans: (C) By reducing the discount rate.
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The reversal of fortune can be attributed to the fact that:
A) economic institutions in European colonies were inclusive in all nations. B) economic institutions in European colonies were extractive in prosperous nations and inclusive in other nations. C) economic institutions in European colonies were extractive in all nations. D) economic institutions in European colonies were inclusive in prosperous nations and extractive in other nations.
If the government imposed a price ceiling on gasoline above this good's current market clearing price, there would be
A) a shortage of gasoline. at the ceiling price. B) a surplus of gasoline at the ceiling price. C) an increase in the price of gasoline. D) no change in the price of gasoline.