If the Fed decides to use an open market operation to reduce the money supply by $1 million, and if the money multiplier is 10, then what total amount of Treasury securities must the Fed initially sell?
A. $10,000,000.
B. $1,000,000.
C. $100,000.
D. $10,000.
Answer: C
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The study of microeconomic theory focuses on the:
A) Interaction of international trade and domestic production of goods and services. B) Operation of the entire economy. C) Role of the banking system in the economy. D) Structure and performance of markets and the operation of the price system.
Which of the following best illustrates a vertical merger
a. GM merges with Chrysler b. Nike merges with Kraft Foods c. Microsoft merges with Dell d. UPS merges with FedEx e. Apple merges with IBM
Which of the following is false? a. If demand decreases and supply increases, the equilibrium price will rise
b. If supply decreases and demand remains the same, the equilibrium price will rise. c. if supply increases and demand decreases, the equilibrium price will fall. d. if demand increases and supply decreases, the equilibrium price will rise.
Someone who is out of work because he or she is between jobs is experiencing
A. frictional unemployment. B. structural unemployment. C. seasonal unemployment. D. cyclical unemployment.