How does the Fed increase the level of reserves in the banking system?
A) by lowering interest rates B) by buying bonds
C) by raising interest rates D) by selling bonds
B
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The efficiency wage model can be modified to allow real wages to vary over the business cycle by assuming that
A) workers' effort may depend on the unemployment rate and the real wage. B) during a recession, labor supply will decrease, reducing the efficiency wage. C) during a recession, productivity will fall, causing a reduction in the efficiency wage. D) during a boom, labor demand will increase, causing the efficiency wage to rise.
The advantage of a nominal anchor is that it prevents a limitless rise in the
A) national debt. B) nominal interest rate. C) inflation rate. D) unemployment rate.
Which of the following variables is not needed to determine the break-even quantity?
a. Marginal costs b. Fixed Costs c. Selling Price d. Average Costs
Since 1940, the level of tariffs in the United States has generally been:
A. Rising B. Higher than the period from 1820-1940 C. Lower than the period from 1900-1940 D. About the same as the period from 1900-1940