Answer the following questions true (T) or false (F)
1. The money supply curve will shift to the left if the Federal Reserve buys government securities from commercial banks.
2. Lowering the Federal Reserve fractional reserve requirement ratio will increase the money multiplier.
3. The Federal Reserve can act to reduce a recessionary gap in the nation's product market by lowering income tax rates.
1. FALSE
2. TRUE
3. FALSE
You might also like to view...
The population of the United States grew _____ during the first half of the 19th century
a. slowly b. erratically c. about 3 percent per year d. about 6 percent per year
Economy A: gross investment equals depreciation Economy B: depreciation exceeds gross investment Economy C: gross investment exceeds depreciation Other things equal, the information suggests that the production capacity in economy:
A. B is growing more rapidly than that in either economy A or C. B. A is growing more rapidly than that in either economy B or C. C. A is growing less rapidly than that in economy B. D. C is growing more rapidly than that in economy B.