Author Question: In addition to lowering the discount rate to increase the money supply, the Fed could also A) ... (Read 45 times)

Capo · **on:** Jun 30, 2018

In addition to lowering the discount rate to increase the money supply, the Fed could also

A) purchase bonds on the open market and lower reserve requirements.
B) sell bonds on the open market and lower reserve requirements.
C) purchase bonds on the open market and raise reserve requirements.
D) sell bonds on the open market and raise reserve requirements.

Question 2

The quantity of labor supplied increases as the real wage rises because

A) higher real wages mean that nominal wages have increased.
B) the opportunity cost of working increases.
C) the quantity of labor demanded increases.
D) labor force participation decreases so that only serious workers are left in the labor force.
E) the opportunity cost of leisure rises.