Which of the following is a tool of monetary policy?
A. Open-market operations.
B. Changes in banking laws.
C. Changes in tax rates.
D. Changes in government spending.
A. Open-market operations.
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When labor is substitutable between two markets, we should expect:
A. those markets to produce substitutable outputs. B. the workers in the two markets to commit to one at the start of their career and stick with it, despite the similarities. C. the two markets to pay the same or similar equilibrium wage. D. All of these statements are true.
Use a model of the dollar-euro foreign exchange market to illustrate how the value of the dollar is determined in terms of the euro. Identify two factors that would increase the value of the dollar in terms of the euro.
What will be an ideal response?
Historically, velocity has been:
A. relatively stable, though the Great Depression of the 1930s caused some significant fluctuations. B. in sync with the business cycle, increasing during times of decline and increasing with recovery. C. relatively stable, though the recent crisis has temporarily caused some significant changes. D. in sync with the business cycle, slowing during times of decline and increasing with recovery.
Antitrust enforcement focuses on market structure, while government regulation deals with all of the following except
A. Output. B. Perfect competition. C. Profits. D. Prices.