If the Fed purchases government securities in the open market, _____
a. the money supply will decrease
b. the money supply will increase only if the seller of those securities is a commercial bank
c. the money demand will increase immediately
d. the money demand will decrease immediately
e. the money supply will increase through the commercial banking system regardless of who the seller is
e
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In the circular flow model, which of the following is considered a leakage?
a. investment spending b. business spending c. household saving d. total exports
Which of the following is responsible for decision making regarding the purchase and sale of bonds by the Fed?
a. the chairman of the Board of Governors of the Federal Reserve System b. the Federal Open Market Operations Committee c. the U.S. Secretary of Treasury d. the president, with the advice and consent of the chairman of the Council of Economic Advisers.
Suppose Country A and Country B are the only two countries in the world. Country A imports Good X from Country B and exports Good Y. In the absence of any transportation cost, at the world price of Good X
A. Country A's import demand curve will be perfectly inelastic. B. both Country A's import demand curve and Country B's export supply curve are positively sloped. C. Country A's import demand curve will intersect Country B's export supply curve. D. Country B's export supply curve is perfectly inelastic.
Commercial Real Estate includes all of the following EXCEPT:
a. Office buildings for sale b. apartments for rent c. retail space for lease d. fast-food restaurants for lease