Which of the following is the market where reserves can be borrowed by one bank

Question

Which of the following is the market where reserves can be borrowed by one bank from another bank very short periods of time? Money market. Federal funds market Commercial paper market. Foreign exchange market. Which of the following policy options would tend to offset each other? A decrease in the discount rate and a decrease in the reserve requirement. An increase in the discount rate and a decrease in the tax rate. An increase in the reserve requirement and an open market sale by the Fed. An increase in the tax rate and a decrease in government spending. Supply-side economists encourage: Both savings and investment incentives. Savings incentives, but not investment incentives. Investment incentives, but not savings incentives. Lower marginal tax rates, but not savings incentives. Lower unemployment and lower inflation rates can best be achieved with a: Rightward shift of the Phillips curve. Rightward shift of the aggregate supply curve. Rightward shift of the aggregate demand curve. Leftward shift of the aggregate supply curve. Investment in human capital: Shifts the aggregate supply curve to the left. Increases structural unemployment. Increases labor productivity. Shifts the Phillips curve to the right.

Explanation / Answer

Answer 33:

Option B.

Answer 34:

Option B. Increase in discount rate reduces the money supply and reduce GDP while decrease in tax rate will increase the level of income and thus GDP.

Answer 35:

Option A. They emphasize on tax incentives that increases both savings and investment.

Answer 36:

Option B.It will increase output which will lower unemployment and also lower the price level.

Answer 37:

Option C.

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