If the Fed sells government securities on the open market, this will cause _____ in the quantity of money available and _____ in the interest rate.
A. an increase; an increase
B. a decrease; an increase
C. an increase; a decrease
D. a decrease; a decrease
B. a decrease; an increase
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Many states charge a 10-cent deposit on every can of soda sold. A purchaser pays an extra 10 cents per can and will get his money back by returning the empty can to a store. This policy encourages recycling by
a. increasing the supply of recyclable materials. b. shifting in the demand curve for canned soda. c. raising the opportunity cost of discarding empty cans. d. taxing the production of canned soda.
An employer would never operate on the upward-sloping part of an MRP curve because
A. he or she would not be maximizing profits. B. he or she would be hiring workers at wages above MRP. C. the number of workers is too large to get economies of scale. D. he or she would then have too little capital per worker.
A decrease in the Z factors shifts the aggregate demand curve to the left.
Answer the following statement true (T) or false (F)
Asset trades that deal with debt instruments are best described as
A) share of stock. B) exchange rate. C) receipts. D) factors. E) bonds or bank deposits.