When the economy is at full employment and inflation is present, the government could create a surplus budget by cutting its own spending and raising taxes. The Fed would be expected to:
a. reduce the required reserve ratio, increase the discount rate, and buy securities on the open market.
b. reduce the required reserve ratio, reduce the discount rate, and sell securities on the open market.
c. reduce the required reserve ratio, reduce the discount rate, and buy securities on the open market.
d. increase the required reserve ratio, reduce the discount rate, and sell securities on the open market.
e. increase the required reserve ratio, increase the discount rate, and sell securities on the open market.
Question 2
When a recession hits, we would expect the government to run a budget deficit by raising the level of its spending or by cutting taxes, or perhaps both. The Fed would be expected to:
a. reduce the required reserve ratio, increase the discount rate, and buy securities on the open market.
b. reduce the required reserve ratio, reduce the discount rate, and sell securities on the open market.
c. reduce the required reserve ratio, reduce the discount rate, and buy securities on the open market.
d. increase the required reserve ratio, reduce the discount rate, and sell securities on the open market.
e. increase the required reserve ratio, increase the discount rate, and sell securities on the open market.
Lac Operon cAMP present
Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
Major trunk lines carrying long-distance traffic crisscrossed the area east of the Mississippi. The
Men Present for Service during the Civil War
A standard employment application form may be used.
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