To decrease the money supply, the Federal Reserve could A) ...

[meagbuch]

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]

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.