The Fed's purchase of U.S. government securities constitutes a(n):
a. contractionary policy because it lowers the amount of total reserves in the banking system.
b. contractionary policy because it lowers the amount of excess reserves in the banking system.
c. expansionary policy because it raises the amount of total reserves in the banking system.
d. expansionary policy because it lowers the amount of total reserves in the banking system.
e. expansionary policy because it raises the amount of required reserves in the banking system.
c
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A key resource is a material:
A) that is unlimited in supply. B) that is rationed by the government. C) that is available to monopolies only. D) that is essential for the production of a good.
Why would macroeconomists rate economic performance in Speed-Nation superior to that in Stag-Nation? Speed-Nation has
A) milder business cycles. B) more volatile business cycles. C) faster economic growth. D) larger real GDP gaps. E) smaller real GDP gaps.