If the Fed was to use all of its three most common tools to increase the money supply, it would:
a. buy bonds, reduce the discount rate, and reduce reserve requirements.
b. sell bonds, reduce the discount rate, and reduce reserve requirements.
c. sell bonds, reduce the discount rate, and increase reserve requirements.
d. sell bonds, increase the discount rate, and increase reserve requirements.
a
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In cities with rent controls, the actual rents paid can be higher than the legal maximum. One explanation for this is
A) rent control laws are so complicated that landlords and tenants may not be aware of what the legal price is. B) landlords are allowed to charge more than the legal maximum on some apartments so long as they charge less on others. C) the legal penalty landlords face for charging more than the legal maximum rent is less than the revenue earned by charging their tenants more than the maximum rent. D) because there is a shortage of apartments, tenants often are willing to pay rents higher than the law allows.
Which case represents the largest increase in the real national debt?
a. The price level increases by 500 percent and nominal debt increases by 500 percent. b. The price level increases by 200 percent and nominal debt increases by 600 percent. c. The price level decreases by 50 percent and nominal debt increases by 300 percent. d. The price level increases by 400 percent and nominal debt increases by 200 percent. e. The price level decreases by 90 percent and nominal debt increases by 200 percent.