Why does the Fed have imperfect control over the money supply?
A. Because the Fed does not know how much reserves will change when it buys or sells securities.
B. Because of unpredictable changes in the public’s desire to hold cash and banks’ desires to hold reserves.
C. Because of unpredictable changes in reserve requirements.
D. Because of the secrecy of FOMC meetings, which lead to policy surprises.
Answer: B
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Dividing the nation's income among the factors of production, the largest percentage is paid to
A) labor B) land C) capital D) entrepreneurship E) labor and capital, with each receiving about 41 percent of the total income.
For a retailer buying from a wholesaler, volume discounts do not violate the Robinson-Patman act because
a. To sell larger volumes, the retailer himself has to offer discounts b. To sell larger volumes, the retailer has to incur costs in promoting the item c. To sell larger volumes, the retailer has to hold the items in inventory longer d. All of the above
Which one of the following people is structurally unemployed?
A) a Saskatchewan welder who lost her job when her company relocated to B. C. and is currently looking for a job B) a Nova Scotia fishery worker who is searching for a better job closer to home C) an office worker who has lost her job because of a general slowdown in economic activity D) a steel worker who is laid off but who expects to be called back soon E) none of the above
The following graph is the production possibilities curve of a nation:
Refer to the above graph. The combination "5 drill presses and 2 bread" indicates:
A. An unattainable combination for the nation
B. Some resources in the nation are unemployed
C. An ideal combination for the nation
D. A combination produced when the nation is at full employment