« previous next »

Author Question: The Federal Reserve may increase the money supply by: a. selling a bond to a member bank. b. ... (Read 69 times)

student77

  • Hero Member
  • *****
  • Posts: 567
on: Jun 30, 2018
The Federal Reserve may increase the money supply by:
 a. selling a bond to a member bank.
 b. selling a bond to a securities dealer.
  c. lending reserves to banks.
 d. increasing required reserve ratios.
 e. increasing the discount rate.

Question 2

Which of the following is true of the simple spending multiplier
 a. It equals the ratio of the marginal propensity to consume to the marginal propensity to save.
 b. It equals the difference between the marginal propensity to save and the marginal propensity to consume.
  c. It is the reciprocal of the marginal propensity to save.
 d. It is the reciprocal of the marginal propensity to consume.
 e. It is the sum of the marginal propensity to consume and the marginal propensity to save.


Anna

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

c


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Cellular mechanisms that increase protein diversity Cellular mechanisms that increase protein diversity
Ryuthela secundaria, a member of the Liphistiidae Ryuthela secundaria, a member of the Liphistiidae
Defibrillator. Defibrillators are devices that supply a voltage charge to the heart in the hope of r Defibrillator. Defibrillators are devices that supply a voltage charge to the heart in the hope of r
Reactions 1 through 4 are necessary for the formation of each peptide bond. Reactions 1 through 4 are necessary for the formation of each peptide bond.
Bank teller assisting with customer service. Bank teller assisting with customer service.
Effect of an Increase in gA,2 on Productivity and Output Effect of an Increase in gA,2 on Productivity and Output
Video: Blood Flow Through the Kidneys

For a complete list of videos, visit our video library