When a primary dealer sells a government bond to the Federal Reserve, reserves in the banking system ________ and the monetary base ________, everything else held constant
A) increase; increases
B) increase; decreases
C) decrease; increases
D) decrease; decreases
A
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According to Walton and Rockoff, the recession of 1937 and 1938 could be attributed to ______ and ______
a. the decline in world trade fostered by German and Japanese policies of self sufficiency, open market gold sales by the Federal Reserve b. increases in taxes, open market gold sales by the Federal Reserve c. increases in taxes, increases in bank required reserve ratios d. the decline in world trade fostered by German and Japanese policies of self sufficiency, increases in bank required reserve ratios
More stable macroeconomic policy does not contribute to less variability in real output
a. True b. False Indicate whether the statement is true or false
Suppose we insert $1 in the circular flow economy. If the $1 moves around in the same direction, which answer represents a possible sequence of items purchased or rented?
a. land, labor, capital, entrepreneurship b. land, services, labor, capital c. goods, labor, services, capital d. goods, labor, capital, services e. labor, capital, labor, rent
Legal entitlement to scientific discoveries, inventions, innovations and intellectual property
A) results in an equal distribution of income and profits. B) protects production on the basis of tradition, social customs and habits. C) encourages technological advancements. D) reduces the incentive to invest in research and development.