Refer to Table 15-2. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy
If the Fed wants to keep real GDP at its potential level in 2017, it should
A) increase income taxes. B) sell Treasury securities.
C) increase the required reserve ratio. D) buy Treasury securities.
D
Economics
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In a perfectly competitive market, all consumers:
A) are price takers. B) set prices to compete in their market. C) have exactly the same demand schedules. D) have exactly the same tastes and preferences.
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A rising inflation rate tends to help the following types of people:
A) retirees and students with savings accounts. B) borrowers and homeowners without mortgages. C) homeowners with mortgages and students with loans. D) landowners and borrowers.
Economics