Which of the following would cause the U.S. money supply to expand?
a. a commercial bank calling in a loan to build up more excess reserves
b. a commercial bank purchasing U.S. securities from the Fed as an investment
c. a decrease in reserve requirements
d. an increase in the discount rate
c
You might also like to view...
The ultimate or absolute measure of value in the opportunity cost perspective
A) does not exist. B) is the labor embodied in goods. C) is the money price of the goods. D) is the nonrenewable resources consumed in producing the goods.
Refer to the above table. Which of the following statements is correct?
A. The table follows economic principles because in an increasing cost industry, increases in a variable input will lead to increase in output. B. The table does not follow economic principles because in an increasing cost industry, increases in a variable input will lead to decrease in output. C. The table does not follow economic principles because the law of diminishing marginal product predicts that increase in a variable input will eventually lead to an increase in the marginal physical product. D. The table follows economic principles because the law of diminishing marginal product predicts that increase in a variable input will eventually lead to a decrease in the marginal physical product.