If the Fed engages in an open market sale of U.S. government securities, what is the likely impact of this monetary policy move?
a. The supply of money and the interest rate will both increase.
b. The supply of money will increase but the interest rate will decrease.
c. The supply of money will decrease but the interest rate will increase.
d. The supply of money and the interest rate will both decrease.
c
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What information is provided by the aggregate demand curve?
What will be an ideal response?
Joe likes to sleep late in the mornings and play tennis in the afternoons. The opportunity cost of Joe attending his morning class for one hour is
A) an hour of tennis given u
Prices of PlayStation 4 game systems are similar at almost every large retailer and little price competition occurs among these retailers. An explanation for this is
A) retailers are in a prisoner's dilemma which causes them to all charge the same price for PlayStation 4 game systems. B) pricing PlayStation 4 game systems is a repeated game. Over a long period of time a cooperative equilibrium has been reached where retailers charge high prices for these systems. C) retailers are all price takers. D) retailers have lobbied state governments to allow them to collude legally to set the prices of certain products.
Choose the letter of the diagram in Figure 36.2 that represents the shift in the foreign exchange market for dollars given the following situation, ceteris paribus: The U.S. economy suddenly experiences a recession.
A. a. B. b. C. c. D. d.