Author Question: Which of the following would be most appropriate if the Federal Reserve wanted to increase the money ... (Read 54 times)

CORALGRILL2014 · **on:** Jun 30, 2018

Which of the following would be most appropriate if the Federal Reserve wanted to increase the money supply in order to stimulate the economy?
a. Buy U.S. government securities.
b. Force the Treasury to reduce the national debt.
c. Raise the discount rate.
d. Increase the reserve requirements.

Question 2

The vicious circle of poverty refers to the fact that LDCs are poor because other countries do not want to buy their goods and services.
a. True
b. False
Indicate whether the statement is true or false