The major problem facing the economy is high unemployment and weak economic growth. The inflation rate is low and stable. Therefore, the Federal Reserve decides to pursue a policy to increase the rate of economic growth. Which policy changes by the Fed would tend to offset each other in trying to achieve that objective?
A. Selling government securities and raising the discount rate
B. Selling government securities and raising the reserve ratio
C. Buying government securities and raising the discount rate
D. Buying government securities and lowering the reserve ratio
C. Buying government securities and raising the discount rate
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A natural monopoly exists when
a. economies of scale are negligible b. there are a few dominant firms that corner the market c. one firm can produce the market output at lower average cost than two or more firms can d. barriers to entry are low e. only a few firms can minimize cost and maximize profit
What is the meaning of perfectly inelastic demand and perfectly elastic demand? How would each be graphed?
Please provide the best answer for the statement.