When the Fed sells a government security to the public, how does it usually receive payment for the security?
A. By accepting checks on bank accounts
B. By drawing money out of circulation
C. By decreasing member bank profits not distributed by the Fed
D. By decreasing reserves in bank accounts at the Fed
Answer: A
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The change in total revenue that results from employing one more unit of labor is called the
A) wage rate. B) value of marginal product of labor. C) average revenue. D) marginal product of labor.
In today's Fed, its primary strategy is to
a. target the federal funds rate in the short-run, target inflation in the long-run. b. target inflation c. target the money supply. d. target the federal funds rate in the short-run, balance inflation and output goals in the long-run.
Which of the following people would be considered unemployed assuming that they are actively seeking employment?
A) those who were fired from their job B) those who resigned from their job C) new entrants into the job market D) All of the above are correct.
Improvements in the productivity of labor will tend to: a. increase the supply of labor
b. increase the demand for labor. c. decrease the supply of labor. d. decrease the demand for labor.