If you were the Chairman of the Fed and faced inflation, you would most likely
a. encourage commercial banks to provide loans by buying government securities
b. encourage commercial banks to provide loans by raising the discount rate
c. encourage commercial banks to provide loans by selling government securities
d. restrict commercial bank lending by selling government securities
e. restrict commercial bank lending by lowering the federal funds rate
D
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In order to be able to consume more in the future, you have to consume
A) less today and save the difference. B) more today to increase supply. C) more consumer goods. D) fewer capital goods.
In an economy that experiences no change in its stock of capital:
A. net investment is zero. B. the consumption of private fixed capital exceeds gross investment. C. gross investment is zero. D. no capital goods are being produced.