An open market sale of government securities by the Fed will cause which of the following?
A. an increase in the equilibrium quantity of reserves
B. an increase in the federal funds rate
C. all of these
D. none of these
Answer: B
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Under the Clayton Act,
a. the same person cannot sit on the boards of directors of competing corporations. b. mergers are illegal. c. monopoly is illegal. d. the Sherman Antitrust Act was repealed.
Discretionary fiscal policy is:
A. fiscal policy that the government actively chooses to adopt. B. taxes and government spending that affect fiscal policy without specific action from policymakers. C. fiscal policy that the government enacts only for a short period of time. D. taxes and government spending that the government actively votes against adoption.
A higher return on saving ______ the amount a household needs to save to achieve any target level of future consumption. This effect on saving is called the _______ effect. If the income effect is large enough, then a reduction in taxes on saving might ______ tax revenues
Fill in the blank(s) with correct word
Miyu’s country has a higher saving rate than Arjun’s country. It is reasonable to assume that ______.
a. Arjun’s country will have greater economic growth than Miyu’s b. Miyu’s country has lower rates of investment than Arjun’s c. Miyu’s country will have greater economic growth than Arjun’s d. Arjun’s country has higher rates of capital formation than Miyu’s