When the Federal Reserve sells government bonds to the public, it directly
a. increases the M1 money supply and increases the reserves of the commercial banking system.
b. increases the M1 money supply, while reducing the reserves of the commercial banking system.
c. reduces the M1 money supply, while increasing the reserves of the commercial banking system.
d. reduces the M1 money supply and decreases the reserves of the commercial banking system.
D
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The strength of the competition faced by a company can profoundly affect its
A. pricing. B. output decisions. C. input decisions. D. All of the responses are correct.
Which of the following accounts for the largest source of revenue for the federal government?
a. sales tax b. federal property tax c. personal income tax d. corporate income tax e. borrowing
If the population older than 16 years of age equals 150 million, the labor force equals 110 million, and the total number of persons employed equals 98 million, then the unemployment rate is: a. 8 percent
b. 38 percent. c. 10.9 percent. d. 28 percent.
When the Fed increases the money supply, interest rates
a. rise, causing velocity to fall. b. fall, causing velocity to fall. c. rise, causing velocity to rise. d. fall, causing velocity to rise.