Author Question: The primary tool the Federal Reserve uses to increase the money supply is A) buying Treasury ... (Read 63 times)

Melani1276 · **on:** Jun 29, 2018

The primary tool the Federal Reserve uses to increase the money supply is

A) buying Treasury securities. B) printing more money.
C) lowering the discount rate. D) lowering the required reserve ratio.

Question 2

The table above shows the PPF of an island community. Choose the best statement.

A. Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more berries, it faces a tradeoff.
B. When this community produces 4 pounds of fish and 12 pounds of berries it faces a tradeoff, but it is inefficient.
C. Suppose that this community produces 5 pounds of fish and 0 pounds of berries. If it decides to gather some berries, it will get a free lunch.
D. If this community produces 3 pounds of fish and 22 pounds of berries, production is efficient but to produce more fish it faces a tradeoff.

helenmarkerine · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

D The production point is on the PPF so production is efficient and there is a tradeoff when more fish are produced.