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Question
The appropriate monetary policy in the event of a recessionary gap would be to
A) increase the difference between the discount rate and the federal funds rate.
B) engage in an open market purchase of U.S. government securities.
C) increase the difference between the federal funds rate and the required reserve ratio.
D) raise the required reserve ratio.
Answer
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Related questions
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Refer to the above figure. Other things being equal, when the government imposes a price floor at P2, then we would expectA) the quantity demanded is Q 2.B) a surplus will occur.C) price to decline until an equilibrium is achieved at P0.D) consumers to bid against each other for goods and force the price even higher.
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Q:
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A) A medical studentʹs internship
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Markets tend to underallocate resources to the production of a good whenA) there are negative externalities. B) there are positive externalities. C) there are public goods produced. D) equilibrium occurs.
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Q:
Which of the following statements is FALSE?
A) The rationing function of prices is not allowed to freely operate when the government imposes price controls.
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Q:
Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will causeA) an increase in the demand for coffee. B) a decrease in the demand for coffee.C) a leftward shift of the demand curve for tea. D) a leftward shift in the demand for coffee.
Q:
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Q:
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Q:
Discuss the relationship between world trade and world Gross Domestic Product (GDP) since the early 1950s.
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Q:
The United Statesʹ balance of payments is likely to improve whenA) there is an increase in political instability in other countries.B) the inflation rate in the United States rises relative to other countries.C) the American government increases its spending on foreign aid. D) American people want to invest more in foreign countries.