a.shortage
b.surplus
c.high demand
d.market supply
which of the following is one way for the fed to stimulate the economy?
a.contract the money supply
b.sell treasury bills
c.raise the discount rate
d.buy u.s. government bonds
2007-11-16 16:23:29 · 4 answers · asked by Alexandria C 1 in Business & Finance ➔ Other - Business & Finance
(A) High Demand (option 'c') and Market Supply (option 'd') both can be contributing factors for a price 'too high'. A High demand either as 'stand-alone' or in conjunction with low market supply results in the price being too high.
(B) Buying U.S. Government Bonds (option 'd'), is one way for the Fed to stimulate the economy, as that pumps in money into the economy, although reducing the discount rate would have a bigger stimulating effect on the economy.
2007-11-16 16:58:04 · answer #1 · answered by Vikram Arora 1 · 0⤊ 0⤋
When the price is too high, customers stop buying. This will lead to a SURPLUS of the product.
SELLING TREASURY BILLS increases the money supply, which will stimulate the economy.
2007-11-16 16:42:45 · answer #2 · answered by Doctor J 7 · 1⤊ 0⤋
a. shortage
don't know second
2007-11-16 16:28:46 · answer #3 · answered by Anonymous · 0⤊ 1⤋
buy government bonds,,,,,,,,,,,,,,,,,,
surplus
2007-11-16 17:54:08 · answer #4 · answered by richard t 7 · 0⤊ 0⤋