1. The Federal Reserve wants to increase the money supply. What could they do?
Buy treasury securities, increase discount rate, decrease required reserve ratio
Sell treasury securities, increase discount rate, increase required reserve ratio
Buy treasury securities, decrease discount rate, decrease required reserve ratio
Buy treasury securities, increase discount rate, increase required reserve ratio
Sell treasury securities, decrease discount rate, increase required reserve ratio
2. Which of the following factors will NOT increase the production capacity of the economy (i.e., what will NOT shift the long-run aggregate supply curve to the right)?
Discovery of new natural resources
improvement in technology
change in exchange rate
improvement in human capital
households savings rate increases
3. Money that some authority, generally a government, has ordered to be accepted as a medium of exchange is called _______ money.
a. fiat
b. intrinsic
c. commodity
d. debt