When the Fed wants to undertake open market operations, it
A. buys or sells securities through the trading desk at the New York Federal Reserve Bank.
B. can require all member banks to buy from or sell to it.
C. buys from or sells to the U.S. Treasury.
D. can require all commercial banks to buy from or sell to it.
Answer: A
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During an inflationary period with full employment or near-full employment,
a. a progressive income tax structure will worsen inflation. b. unemployment taxes paid by workers will be low. c. total unemployment benefits will be maximized. d. lower disbursements for unemployment compensation will moderate inflation.
The difference between the average total cost and the average fixed cost is the average variable cost
Indicate whether the statement is true or false
Refer to Table 10.2. If the price of output is $10 per unit, the marginal revenue product of the third unit of labor is:
A. $50. B. $60. C. $500. D. $600.
Why will a private market be unable to produce the efficient quantity of public goods?
A) because the good's marginal cost is too low B) because the good is nonexcludable, so there is the free rider problem C) because the good is rival, so no one will want to pay the producer for it D) All of the above answers are correct.