When the U.S. Treasury sells bonds to the public to finance government spending and then the Fed buys the bonds through open-market purchases, the Fed is
a. monetizing the debt.
b. decreasing the money supply.
c. decreasing bank reserves.
d. increasing the difficulty of raising funds for government spending.
a. monetizing the debt.
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It is clear from the text that most economists assume the primary goal of all firms is to
a. maximize sales b. minimize cost c. maximize efficiency d. maximize profit e. minimize loss
Which one of the following labor resources will likely have the most inelastic supply schedule in the short run?
a. filling station attendants b. sales clerks c. construction laborers d. dentists
According to purchasing-power parity, if prices in the United States increase by a smaller percentage than prices in the United Kingdom, then the
a. real exchange rate rises. b. nominal exchange rate rises. c. real exchange rate falls. d. nominal exchange rate falls.
Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, where QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. If consumers' income is $50,000 and the price of satellite TV service is $90, then which of the following gives the demand curve for cable TV?
A. QCTV = 17 - 0.25 × PCTV B. QCTV = 67 - 0.25 × PCTV C. QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV D. QCTV = 13 - 0.25 × PCTV