By law, the Federal Reserve is barred from
A. raising the reserve ratio to 20%.
B. lowering the discount rate to 2%.
C. selling more than $5 billion in United States government securities during any month.
D. buying more than $5 billion in United States government securities during any month.
A. raising the reserve ratio to 20%.
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Kelly's marginal utilities for magazines and packages of gummy bears are listed in the table above. What is the extra utility received by Kelly when she decides to consume 3 packages of gummy bears instead of 2 packages?
A) 20 B) 160 C) 180 D) 540
The demand for money is ________ related to the nominal interest rate
A) positively B) negatively C) not D) None of the above answers is correct because the relationship between the demand for money and the nominal interest rate changes with the inflation rate.