In order to increase the money supply, the Fed can
A. Lower the reserve requirement, decrease the discount rate, or buy bonds.
B. Raise the reserve requirement, increase the discount rate, or sell bonds.
C. Raise the reserve requirement, increase the discount rate, or buy bonds.
D. Lower the reserve requirement, increase the discount rate, or buy bonds.
Answer: A
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Mr. Scrooge owns assets worth $100 million. The rate of return on his assets is 5 percent per year. Mr. Scrooge's wealth is ________, and his income is ________
A) $5 million a year; $100 million B) $100 million; $5 million a year C) $100 million; $105 million D) $5 million a year; $100 million a year
In a coin toss bet, where both heads and tails are equally likely, you win a $3 on heads but lose $1 on tails. The expected value of the bet is
a. $0.50 b. -$0.50 c. $1.00 d. $0.00