Figure 14-6
In the situation shown in , how could the Fed return the economy to potential output?
a.
decrease government spending
b.
decrease taxes
c.
sell U.S. government bonds to banks
d.
lower the discount rate
e.
lower the required reserve ratio
c
Economics
You might also like to view...
In the long run, advertising by all firms in a monopolistically competitive industry
A) increases all firms' demand. B) decreases all firms' demand. C) lowers all firms' costs. D) might increase or decrease the firms' prices. E) lowers all firms' prices.
Economics
If the Fed raises the U.S. interest rate, the demand for dollars ________ and the exchange rate ________
A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls
Economics