An increase in the supply of money in an economy

Assignment Help Business Economics

Reference no: EM131101313

An increase in the supply of money in an economy could be caused by (choose all that apply): a. an increase in the discount rate. b. a decrease in the discount rate. c. an increase in the required reserve ratio. d. a decrease in the required reserve ratio. e. a sale of government securities by the Fed. f. a purchase of government securities by the Fed

Reference no: EM131101313

Questions Cloud

Internet has changed the market structure : Shortly discuss how the development of the Internet has changed the market structure in which companies operate. Assume that most firms can be categorized as being in perfect competition, monopolistic competition, oligopoly, or monopoly. Keep in mind..

Fund the federal deposit insurance corporation : The actual reason that banks must hold required reserves is: LO33.2 a. To enhance liquidity and deter bank runs. b. To help fund the Federal Deposit Insurance Corporation, which insures bank deposits. c. To give the Fed control over the lending abili..

Minimum wage will lead to increase in unemployment rate : On April 1, 2009, in the middle of a recession, the government of the province of Ontario, Canada increased the provincial minimum wage from $8.75 to $9.50. What will the likely effect of this policy be? Both the leftward shift in the labor demand cu..

What are your firm variable costs-fixed costs : You are a perfectly competitive firm and P = $5 . Your cost function is: C(Y )= Y2 + Y + 4. What are your firm’s variable costs? Fixed costs? Write down your firm’s profit function. Write down the firms first order condition for profit maximization a..

An increase in the supply of money in an economy : An increase in the supply of money in an economy could be caused by (choose all that apply): a. an increase in the discount rate. b. a decrease in the discount rate. c. an increase in the required reserve ratio. d. a decrease in the required reserve ..

Checkable-deposit liabilities : A commercial bank has $100 million in checkable-deposit liabilities and $12 million in actual reserves. The required reserve ratio is 10 percent. How big are the bank’s excess reserves? LO33.2a.$100 million.b.$88 million.c.$12 million.d.$2 million.

What are the fixed costs of the firm-what are the profits : A firm is producing 200 units of its product. At this level of output the AVC=$20, and the ATC=$70. The firm is a price taker and the price for its product is $100. Assuming that the firm is maximizing profits and that labor is the only variable inpu..

Which factors can contribute to a reduced perception of risk : Using the housing market as an example, explain the following concepts: (a) loan-to-value ratio (b) asset price bubble (c) financial accelerator. In the financial asset feedback process, which factors can contribute to a reduced perception of risk?

The demand for liquor is inelastic : A state in the southeastern region of the United States operates state liquor stores. Prices at the stores are set in the following fashion: add 41% to the wholesale price at which the system acquires the product. To that is added an excise of $8.10 ..

User Account

All Pages