QUESTION 37 Which of the following would constate contractionary monetary policy by the Fed? O a Open market les of government securities, an increase in the discount, and an increase in serve requireme Ob An increase in tariffs on imported goods and decrease in foreign aid OC. An increase in income tax rates, cut in government spending, and an elimination of the investea credit d. Open market purchases of government securities, a cut in the discount, and increment QUESTION 38 Which of the following are true Da Negative externalities are real cows, but, unlike the other reserves firm we in production, see the safe does shave to pay for In the case of external costs, firms and to produce too much from society's standpoint,casing neticeylon due to an overaction of the production of the good Oci government could impose pollution tax equal to the exact site of the deal composed by a fim, then the fim would produce the wally desired level of Od All of the above are true
QUESTION 39 Unemployment rises in and falls in O a peaks, troughs b. booms, recessions O c. contractions, expansions Od.expansion, contractions QUESTION 40 I banks faced a 100 percent reserve requirement, a $10,000 reduction in banking reserves would decrease the money supply by: O a $1,000,000 Ob $100.000 Oc$1,000 d. 510.000
QUESTION 37 Which of the following would constate contractionary monetary policy by the Fed? O a Open market les of gove
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