Author Question: When the Fed ________, the quantity of banks' reserves decreases. A) hikes taxes B) buys ... (Read 28 times)

dalyningkenk · **on:** Jun 29, 2018

When the Fed ________, the quantity of banks' reserves decreases.

A) hikes taxes
B) buys government securities
C) lowers the required reserve ratio
D) sells government securities
E) raises the required reserve ratio

Question 2

The table above gives data for the nation of Pearl, a small island in the South Pacific. The economy is at full employment when real GDP is

A) 31 billion. B) 34 billion. C) 28 billion. D) 22 billion. E) 25 billion.