Describe the channels through which an open market purchase of bonds by the Fed affects output in a closed economy
What will be an ideal response?
An open market purchase of bonds by the Fed leads to a rightward shift in the money supply. As a result, interest rates decrease, which in turn increases investment. The higher levels of investment translate into higher output levels.
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Refer to the figure above. Which apartment is the best feasible choice for the individual?
A) Apartment 1 B) Apartment 2 C) Apartment 3 D) Apartment 4
Slick Shades has a constant marginal cost of production equal to $40 and the distributors have a constant marginal cost of distribution equal to $20. If Slick Shades is producing the profit-maximizing number of sunglasses (in hundreds) and charging the profit-maximizing wholesale price, what is Slick Shades' profit (in hundreds)?
The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.
A) $6,400
B) $8,000
C) $7,200
D) $5,60
Two items which have a negative cross price elasticity of demand are referred to as
A) luxury goods. B) inferior goods. C) substitutes. D) complements.
Which of the following is not a variable in the index of leading indicators?
a. Average work week. b. Duration of unemployment. c. Employment claims. d. New businesses.