Answer the next question on the basis of the information in the following table.Money SupplyMoney DemandInterest RateInvestment (at interest rate shown)$400$6002%$7004005003600400400450040030053004002006200Suppose the legal reserve requirement is 10% and initially there are no excess reserves in the banking system. If the Fed wished to reduce the interest rate by 1 percentage point, it would ________.
A. sell $100 of government bonds in the open market
B. sell $10 of government bonds in the open market
C. buy $100 of government bonds in the open market
D. buy $10 of government bonds in the open market
Answer: D
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Suppose the supply of non-OPEC oil increases due to new petroleum discoveries in other countries. What happens OPEC's share of the world oil market?
A) Increases B) Decreases C) Remains the same D) We do not have enough information to answer this question.
If the government increases the income tax rate:
A. disposable income decreases. B. disposable income increases. C. disposable income remains unaffected. D. total income increases.
Suppose that a country is producing on its PPC at a point to the left of the tangency between the trade line and the PPC. At the production point,
A) the opportunity cost in production of the good on the horizontal axis is less than its trade price. B) the opportunity cost in production of the good on the horizontal axis is more than its trade price. C) the opportunity cost in production of the good on the vertical axis is less than its trade price. D) the opportunity cost in production of the good on the horizontal axis may be either less than or more than its trade price.
If Sammy does not have a full-time job but is working part-time at 4 different jobs, he is counted ________ in the job data, and ________ in the persons-employed data.
A. once; 4 times B. 4 times; once C. once; not being employed D. 4 times; 4 times