Refer to Figure 15-15. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?
A) decrease income taxes B) sell Treasury bills
C) decrease the required-reserve ratio D) buy Treasury bills
B
Economics
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A major factor in determining the rational expectation of inflation is
A) the size of the budget deficit. B) forecasts of the Fed's monetary policy. C) forecasts of fiscal policy. D) the previous month's unemployment rate. E) the recent past behavior of the stock market.
Economics
The movement to set up a central bank in the United States was spurred by the financial panic that occurred in
A) 1816. B) 1907. C) 1929. D) 1987.
Economics