Refer to Table 15-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy
If the Fed wants to keep real GDP at its potential level in 2017, it should
A) buy Treasury securities. B) decrease income taxes.
C) sell Treasury securities. D) decrease the required reserve ratio.
C
Economics
You might also like to view...
Theory suggests that minimum-wage laws create ________ unemployment, especially among younger workers
A) frictional B) cyclical C) structural D) under-reported
Economics
Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect the total revenues the restaurant earns to:
A) increase. B) stay the same. C) decrease. D) cannot be determined with the information given.
Economics