Which of the following is an appropriate monetary policy if the ...

[Diane]

Which of the following is an appropriate monetary policy if the Fed wants to increase the money supply?
 a. An increase in the required reserve ratio.
  b. An increase in the discount rate.
  c. Purchases of bonds in open market operations.
  d. Higher taxes on interest income.

Question 2

Explain why the LDCs are unable to invest much in capital goods and human capital.

[josephsuarez]

Answer to Question 1

c

Answer to Question 2

The demands of the growing populations in these countries force them to devote most of their resources to the production of consumption goods, and not enough to the production of capital goods or human capital.