Which of the following combinations would not produce conflicting effects on the supply of money?
a. The Fed pays a higher interest rate on bank reserves and increases the required reserve ratio
b. The Fed conducts an open market purchase and lowers the discount rate.
c. The Fed pays a higher interest rate on bank reserves and conducts an open market sale of government securities.
d. None of the above would produce conflicting effects on the supply of money
b
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In 2011, U.S. GDP totaled approximately:
a. $2.1 trillion b. $2.8 trillion c. $10.7 trillion d. $15.0 trillion
Why do nations impose trade barriers, such as those instituted during the Great Depression, that make it difficult for their own citizens to trade with people in other countries?
a. Trade restrictions are a good way for a country to increase the total employment and income level of its citizens. b. As the experience during the 1930s illustrates, trade restrictions are an effective way to increase exports and tax revenues. c. Trade restrictions provide gains to domestic residents at the expense of foreigners. d. Trade restrictions often provide benefits to highly visible special interest groups while imposing a less visible cost on the general populace.