The tools of monetary policy are
A. government spending, tax rates, and the required reserve ratio.
B. open market operations, government spending, and the required reserve ratio.
C. open market operations, differential between the discount rate and the federal funds rate, and the required reserve ratio.
D. open market operations, differential between the discount rate and the federal funds rate, and tax rates.
Answer: C
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After the sugar substitute saccharin was found to cause cancer in laboratory mice, its price dropped dramatically. This change in the price was because
A) the supply of saccharin decreased. B) the demand for saccharin decreased. C) the government ordered the price reduction. D) saccharin producers felt sorry for their past customers and were making an honest attempt to compensate them.
What are the primary causes of armed conflict in developing countries and what increases the risk factor for these conflicts?
What will be an ideal response?
"Real money balances" refers to ________
A) the quantity of goods and services that money can buy B) gold and silver C) money that is actually available to be spent D) all of the above E) none of the above
Assume that pizza and hamburgers are the only food items available to consumers. If the price of pizza increases, other factors constant, then which of the following will definitely happen?
A. Total revenues received by pizza sellers will increase B. Total revenues received by pizza sellers will decrease C. Total revenues received by hamburger sellers will increase D. Total revenues received by hamburger sellers will decrease