In order to increase its target for the federal funds rate, the Fed would normally
A) conduct open market sales.
B) conduct open market purchases.
C) increase the discount rate.
D) increase reserve requirements.
A
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The textbook presents the movement of rush-hour traffic as an example of social
A) chaos. B) competition. C) conflict. D) confusion. E) cooperation.
If you are earning $20,000 this year and the CPI is 165, your real income in base year prices is
A) $121.21. B) $12,121.21. C) $20,000. D) $16,500. E) $33,000.
One explanation for the downward slope of the aggregate demand curve is that when the price level increase, which of the following will decrease?
A) Real value of assets B) Price of foreign goods C) Prices of substitute goods D) Expectations of future prices E) Government deficits
Which of the following forms of money is the least liquid?
A. dollars B. checking account deposits C. passbook savings D. certificates of deposit