When inflation threatens, which of the following responses is the Fed likely to make?
a. expand the money supply
b. lower the discount rate and thereby the cost of borrowing by banks
c. lower interest rates
d. sell off government bonds to banks and others thereby reducing the funds banks can lend to individuals and businesses
Answer: d
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How is the number of legislators in the House of Representatives decided?
a. Size of the state b. Population of the state c. It was determined at the Constitutional Convention. d. Each state has the same number of legislators. e. Percentage of citizens who voted in last election
Which of the following are the greatest beneficiaries of interest group activity?
A) poorly educated people B) lower-class people C) poor and indigent people D) better-educated, middle-class, and upper-class people E) those just about to graduate from high school