If the Federal Reserve conducts an open market purchase, the
A) interest rate will not change. B) interest rate will increase.
C) money supply is decreased. D) interest rate will decrease.
D
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A statement that is often used to describe demand-pull inflation is ________.
A. "Too much money chasing too few goods." B. "A rising tide lifts all boats." C. "Money is easily earned, but not easily saved." D. "There is no such thing as a free lunch."
Recurring fixed costs may lead to only one firm producing in a Cournot oligopoly model.
Answer the following statement true (T) or false (F)
On the evening news you hear of a scientific study that directly links premature births to cigarette smoking. This is an example of
A) direct-model evidence. B) informed voter-model evidence. C) structural-model evidence. D) reduced-form evidence.
Prices communicate information about the relative value of resources in the marketplace. Which of the following would cause the marginal value and, hence, the price, of oranges to rise?
a. A freeze wipes out half of the Florida citrus groves. b. Orange juice is shown to reduce blood cholesterol levels. c. The price of grape, cranberry, and pineapple juice falls dramatically.