To contract the money supply, the Fed should
A) lower the required reserve ratio.
B) increase government spending and cut taxes.
C) reduce the differential between the discount rate and the federal funds rate.
D) sell U.S. government securities.
D
Economics
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Banks would be expected to minimize holding excess reserves because this practice is:
a. illegal. b. not profitable. c. technically difficult. d. subject to a stiff excess reserves tax.
Economics
Discrimination is difficult to measure empirically because
a. it is hard to measure and control for differences in marginal productivity. b. data on racial and gender differences is rarely available. c. discrimination is practiced by very few employers. d. economists find no significant wages differentials due to gender or race.
Economics