Author Question: To decrease the money supply, the Federal Reserve could A) conduct an open market sale of ... (Read 87 times)

meagbuch

  • Hero Member
  • *****
  • Posts: 568
To decrease the money supply, the Federal Reserve could
 
  A) conduct an open market sale of Treasury securities.
  B) lower the discount rate.
  C) raise income taxes.
  D) lower the required reserve ratio.
  E) raise transfer payments.

Question 2

Provide two microeconomic statements and two macroeconomic statements. Classify your statements as positive or normative, and explain your classifications.
 
  What will be an ideal response?



amandanbreshears

  • Sr. Member
  • ****
  • Posts: 320
Answer to Question 1

A

Answer to Question 2

Microeconomic statements are: Fewer deep water oil wells should be drilled in the Gulf of Mexico. If less oil is produced, the price of oil will rise. The first statement is normative because it relies on what the person thinks should be done. The second statement is positive because it is possible to test the effect of less oil being produced.
Macroeconomic statements are: The currently unemployment rate is too high. The current unemployment rate is higher for blacks than for whites. The first statement is normative because it depends on what is deemed too high. The second statement is positive because it can be checked to determine its validity.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

For a complete list of videos, visit our video library