If the Federal Reserve were to simultaneously sell government bonds in the open market and decrease the discount rate, the
a. money supply will increase.
b. money supply will decline.
c. money stock will stay the same.
d. two tools will work in opposite directions and the effect on the money supply is uncertain.
D
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Some nations benefit absolutely from abandoning their monetary policy and control of their currency because:
A) their monetary policy permitted high inflation under pressure from political interests that would not be present under a common currency arrangement. B) they did not have sufficient currency in their own nation to support a higher GDP. C) they had a strong currency, which hurt their exports. D) the central bank would keep the money supply under tight control, which is not good for economic expansion and jobs.
Social Security benefits could be reduced in each of the following ways except
A. cutting the promised monthly benefit. B. reducing the degree to which benefits are adjusted for inflation. C. investing the trust fund in the stock market. D. increasing the retirement age.