An open market purchase of government securities by the Fed will cause which of the following?
A) an excess quantity of reserves supplied and a reduction in the federal funds rate
B) an excess quantity of reserves demanded and an increase in the federal funds rate
C) an excess quantity of reserves demanded and a reduction in the federal funds rate
D) an excess quantity of reserves supplied and an increase in the federal funds rate
A
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Which of the following is not correct?
a. When a union is present in a labor market, wages may not be determined by the equilibrium of supply and demand. b. Like any cartel, a union is a group of sellers acting together in the hope of exerting their joint market power. c. When unions raise wages above equilibrium, the quantity of labor supplied decreases, and the quantity of labor demanded increases. d. Most workers in the U.S. economy are not members of a union.
In which of the following economic theories is it possible for an increase in the money supply to lead to a decrease in Real GDP in the short run?
A) Keynesian theory B) Monetarist theory C) New classical theory D) a and b E) a and c
By holding so much in foreign currency reserves, China is risking
A. A default on its bonds. B. Deflation. C. Inflation. D. Recession.
As the probability of detecting shirking increases, the size of the bond necessary to deter shirking
A) also increases. B) stays the same. C) decreases. D) increases at an exponential rate.