Author Question: Suppose the central bank reduces the money supply. This monetary contraction will always cause a ... (Read 45 times)

savannahhooper

  • Hero Member
  • *****
  • Posts: 576
Suppose the central bank reduces the money supply. This monetary contraction will always cause a greater reduction in output when it is accompanied by
 
  A) an increase in expected future taxes.
  B) an increase in expected future interest rates.
  C) a reduction in expected future output.
  D) all of the above
  E) none of the above

Question 2

Although the FDIC was created to prevent bank failures, its existence encourages banks to
 
  A) take too much risk.
  B) hold too much capital.
  C) open too many branches.
  D) buy too much stock.



Awesome

  • Sr. Member
  • ****
  • Posts: 280
Answer to Question 1

D

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

For a complete list of videos, visit our video library