An open market purchase of bonds by the Fed
a. drains reserves from the banking system and decreases the money supply
b. injects reserves into the banking system and increases money demand
c. injects reserves into the banking system and increases the money supply
d. drains reserves from the banking system and increases the money supply
e. injects reserves into the banking system and decreases the money supply
C
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Economists have shown that when the ultimatum game experiment is carried out, both allocators and recipients act as if fairness is important
Indicate whether the statement is true or false
Microeconomics is concerned with the study of
A) the effects of inflation. B) the effects of government spending. C) the effects on individual producers of higher wages paid to workers. D) aggregates.
Oligopolies in the United States rarely engage in explicit collusion because
a. it leads to lower profits b. firms are very wary of each other in this type of market c. they may have different dominant strategies d. it is illegal e. dominant strategies may not exist
Refer to Exhibit 6-2. The unemployment rate in year 4 is
a. 12 1/2 percent. b. 72 percent. c. 87 1/2 percent. d. 10 percent. e. 90 percent.