f the Fed wants to increase bank reserves, it can:
A. Raise the discount rate.
B. Buy government bonds from the public.
C. Increase the minimum reserve ratio.
D. Decrease the money multiplier.
B. Buy government bonds from the public.
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A technological improvement in producing good A would cause:
A. a shift to the right of the supply curve for A. B. a shift to the left of the supply curve for A. C. a movement upward and to the right along the supply curve for A. D. a movement downward and to the left along the supply curve for A.
In response to changing inventories in Figure 9.8, if the economy produces at full employment of $400 billion, firms will attempt to
A. Increase employment and buy more machinery. B. Increase employment and buy less machinery. C. Reduce employment and buy less machinery. D. Reduce employment and buy more machinery.