This topic contains a solution. Click here to go to the answer

Author Question: If the actual money multiplier equals the potential money multiplier and if the Fed wishes to reduce ... (Read 245 times)

MirandaLo

  • Hero Member
  • *****
  • Posts: 538
If the actual money multiplier equals the potential money multiplier and if the Fed wishes to reduce the money supply by 1 million when the reserve ratio is 20 percent, then the Fed should
 
  A) sell 200,000 of government securities. B) sell 500,000 of government securities.
  C) buy 200,000 of government securities. D) buy 500,000 of government securities.

Question 2

The production function displays
 
  A) normal returns.
  B) increasing returns.
  C) diminishing returns.
  D) average returns.
  E) real returns.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

spencer.martell

  • Sr. Member
  • ****
  • Posts: 342
Answer to Question 1

A

Answer to Question 2

C




MirandaLo

  • Member
  • Posts: 538
Reply 2 on: Jun 30, 2018
Excellent


Laurenleakan

  • Member
  • Posts: 309
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

For a complete list of videos, visit our video library