The Fed can attempt to increase the federal funds rate by
A) selling government bonds, which increases the money supply.
B) selling government bonds, which decreases the money supply.
C) buying government bonds, which increases the money supply.
D) buying government bonds, which decreases the money supply.
B
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The measure of the money supply M1 includes all of the following except
A. Currency in circulation. B. Balances in transactions accounts. C. Travelers checks. D. Balances in savings accounts.
One of the reasons government debt is different from individual debt is:
A. the government debt is unrelated to income. B. all government debt is owed to other government agencies. C. government never really needs to pay back its debt. D. government does not pay interest on its debt.
Which of the following is correct?
A. Both the federal tax system and the state and local tax systems are regressive. B. The federal tax system is progressive, while the state and local tax systems are regressive. C. The federal tax system is regressive, while the state and local tax systems are progressive. D. Both the federal tax system and the state and local tax systems are progressive.
If a Lorenz curve were constructed for the distribution of wealth, the curve would
a. indicate greater inequality for wealth than income. b. indicate less inequality for wealth than income. c. be identical to the Lorenz curve for income. d. be a straight line from the origin.