Econ 104 Rustici exam 1-3 (final study) |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
with correct answers |||\\\ |||\\\
Which of the following is true with respect to government policy and America's Great
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Depression? - correct answer✔✔A. The Federal Reserve failed in its official function as "lender |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
of last resort" and as a result the money supply unexpectedly expanded by 29% from
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
1929-1933 causing rapid deflation. |||\\\ |||\\\ |||\\\
B. The Hoover Administration cut taxes and reduced real wage rates below the full-
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
employment equilibrium level. |||\\\ |||\\\
C. Both Hoover and Roosevelt encouraged high wage rates and that increased total wage
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
payrolls.
D. The Roosevelt Administration paid farmers to grow crops and livestock to stimulate the
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
economy.
** E. The federal government twice instituted minimum wage laws causing massive
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
unemployment in labor markets. |||\\\ |||\\\ |||\\\
Which of the following is not true? - correct answer✔✔A. A repressed inflation arises from
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
accelerating inflation and maximum price controls. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
**B. The classical model failed in the$ 1930's because it had great difficully explaining the
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
severity of the Great Depression. |||\\\ |||\\\ |||\\\ |||\\\
C. Aggregate supply is the "Q" part of the quantity equation of exchange.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
D. The "spending multiplier" of Keynes is defined as 1/ (1-b) (1-tax).
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
E. If aggregate demand increases, and aggregate supply is inelastic, the price level will rise.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Which of the following is true? - correct answer✔✔A. The current American banking system is
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
governed by the gold standard. |||\\\ |||\\\ |||\\\ |||\\\
**B. A saver's deposits are assets and liabilities to the bank receiving the deposit.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
,C. The banks are responsible for the multiple expansion or contraction of credit because of the
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Keynsian Spending Multiplier. |||\\\ |||\\\
D. If you withdraw $1 from your checking account, ceteris paribus, the total money supply will
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
contract.
Moving a dollar of deposits from a savings account to a checking account (assuming the same
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
legal deposit requirements for both) will not change
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the monetary aggregate M2.
|||\\\ |||\\\ |||\\\
Suppose we have two people Smith and Jones. Each person wants both one of each a
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
pineapple and a coconut. Below is their respective time forgone with gathering each good. If|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the price is one pineapple for one coconut, which of the following is correct?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Smith:
Pineapple
50 Minutes |||\\\
Coconut
160 Minutes |||\\\
Jones:
Pineapple
200 Minutes |||\\\
Coconuts
180 Minutes - correct answer✔✔A. Smith has a comparative advantage in both pineapples
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
and coconuts. |||\\\
B. Jones gains 110 minutes from trade and Smith would lose 20 minutes (so no trade occurs).
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
c. Jones gains 20 minutes from trade and Smith would lose 110 minutes (so no trade occurs ).
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
D. Jones is absolutely inferior at producing everything therefore he will produce nothing.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
**E. Smith produces pineapples and exports them for his coconut consumption.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
, Assume the following information. The deposit to currency ratio is 0.2 and the reserve deposit
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
requirement ratio is 0.1. If the monetary base in the economy is $100 billion, the total money |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
supply is: - correct answer✔✔A. $366 billion |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
**B. S400 billion |||\\\ |||\\\
C $300 billion
|||\\\ |||\\\
D. $200 billion
|||\\\ |||\\\
E. This is a trick question, because there is no data on the marginal propensity to consume
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Suppose the following percentage data is known about the quantity equation variables: M
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
decreases 4%; V increases 1%, and Q increases 2%. What will be the resulting inflation or |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
deflation of nominal prices? - correct answer✔✔A. Decrease of 6% |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
B. Increase of 1%
|||\\\ |||\\\ |||\\\
C. Increase of 3%
|||\\\ |||\\\ |||\\\
D. Decrease of 7%
|||\\\ |||\\\ |||\\\
**E. Decrease of 5% |||\\\ |||\\\ |||\\\
What is true with respect to US economic policy following World War 1? - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔A. The government gave unemployment benefits to the millions of unemployed. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
**B. The government cut taxes and paid down the national debt by 10% during the recession.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
C. The government pursued a "high wages" policy to stimulate employment
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
D. The Federal Reserve dramatically increased the money supply by 29% during the recession.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
E. None of the above is correct.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
You are appointed as Chairman of the Board of Governors of the Federal Reserve System.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Suppose people have no expectations. If you want an expansionary monetary policy to lower
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
interest rates, you would: - correct answer✔✔**A. Lower reserve requirements on banks.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
B. Use open market operations to sell assets
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
with correct answers |||\\\ |||\\\
Which of the following is true with respect to government policy and America's Great
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Depression? - correct answer✔✔A. The Federal Reserve failed in its official function as "lender |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
of last resort" and as a result the money supply unexpectedly expanded by 29% from
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
1929-1933 causing rapid deflation. |||\\\ |||\\\ |||\\\
B. The Hoover Administration cut taxes and reduced real wage rates below the full-
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
employment equilibrium level. |||\\\ |||\\\
C. Both Hoover and Roosevelt encouraged high wage rates and that increased total wage
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
payrolls.
D. The Roosevelt Administration paid farmers to grow crops and livestock to stimulate the
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
economy.
** E. The federal government twice instituted minimum wage laws causing massive
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
unemployment in labor markets. |||\\\ |||\\\ |||\\\
Which of the following is not true? - correct answer✔✔A. A repressed inflation arises from
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
accelerating inflation and maximum price controls. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
**B. The classical model failed in the$ 1930's because it had great difficully explaining the
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
severity of the Great Depression. |||\\\ |||\\\ |||\\\ |||\\\
C. Aggregate supply is the "Q" part of the quantity equation of exchange.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
D. The "spending multiplier" of Keynes is defined as 1/ (1-b) (1-tax).
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
E. If aggregate demand increases, and aggregate supply is inelastic, the price level will rise.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Which of the following is true? - correct answer✔✔A. The current American banking system is
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
governed by the gold standard. |||\\\ |||\\\ |||\\\ |||\\\
**B. A saver's deposits are assets and liabilities to the bank receiving the deposit.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
,C. The banks are responsible for the multiple expansion or contraction of credit because of the
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Keynsian Spending Multiplier. |||\\\ |||\\\
D. If you withdraw $1 from your checking account, ceteris paribus, the total money supply will
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
contract.
Moving a dollar of deposits from a savings account to a checking account (assuming the same
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
legal deposit requirements for both) will not change
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the monetary aggregate M2.
|||\\\ |||\\\ |||\\\
Suppose we have two people Smith and Jones. Each person wants both one of each a
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
pineapple and a coconut. Below is their respective time forgone with gathering each good. If|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
the price is one pineapple for one coconut, which of the following is correct?
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Smith:
Pineapple
50 Minutes |||\\\
Coconut
160 Minutes |||\\\
Jones:
Pineapple
200 Minutes |||\\\
Coconuts
180 Minutes - correct answer✔✔A. Smith has a comparative advantage in both pineapples
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
and coconuts. |||\\\
B. Jones gains 110 minutes from trade and Smith would lose 20 minutes (so no trade occurs).
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
c. Jones gains 20 minutes from trade and Smith would lose 110 minutes (so no trade occurs ).
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
D. Jones is absolutely inferior at producing everything therefore he will produce nothing.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
**E. Smith produces pineapples and exports them for his coconut consumption.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
, Assume the following information. The deposit to currency ratio is 0.2 and the reserve deposit
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
requirement ratio is 0.1. If the monetary base in the economy is $100 billion, the total money |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
supply is: - correct answer✔✔A. $366 billion |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
**B. S400 billion |||\\\ |||\\\
C $300 billion
|||\\\ |||\\\
D. $200 billion
|||\\\ |||\\\
E. This is a trick question, because there is no data on the marginal propensity to consume
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Suppose the following percentage data is known about the quantity equation variables: M
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
decreases 4%; V increases 1%, and Q increases 2%. What will be the resulting inflation or |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
deflation of nominal prices? - correct answer✔✔A. Decrease of 6% |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
B. Increase of 1%
|||\\\ |||\\\ |||\\\
C. Increase of 3%
|||\\\ |||\\\ |||\\\
D. Decrease of 7%
|||\\\ |||\\\ |||\\\
**E. Decrease of 5% |||\\\ |||\\\ |||\\\
What is true with respect to US economic policy following World War 1? - correct
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
answer✔✔A. The government gave unemployment benefits to the millions of unemployed. |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
**B. The government cut taxes and paid down the national debt by 10% during the recession.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
C. The government pursued a "high wages" policy to stimulate employment
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
D. The Federal Reserve dramatically increased the money supply by 29% during the recession.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
E. None of the above is correct.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
You are appointed as Chairman of the Board of Governors of the Federal Reserve System.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
Suppose people have no expectations. If you want an expansionary monetary policy to lower
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
interest rates, you would: - correct answer✔✔**A. Lower reserve requirements on banks.
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
B. Use open market operations to sell assets
|||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\ |||\\\
