Assuming an decrease in money demand, then to keep interest rates constant the Fed must
a. keep the money supply constant.
b. conduct an open market sale of bonds.
c. reduce the required ratio.
d. both b and c.
e. None of the above
D
You might also like to view...
As the manager of good A, which of the following would be of greatest concern (based on the regression results above)?
A) None of the factors below would be of concern. B) an impending recession C) pressure on you by your salespersons to lower the price so that they can boost their sales D) a price reduction by the makers of good B
Joe works for an environmental agency. Every day he chooses to fill his reusable water bottle and bring it to work instead of bringing in a plastic disposable water bottle each day. Joe most likely derives utility from:
A. the knowledge that others in his firm observe his environmentally-friendly choice of water bottle. B. Joe likely derives utility from all three of these sources. C. the knowledge that he is doing something good for the environment by not using plastic water bottles. D. the taste of water from his reusable water bottle.