When the Fed buys a Treasury bill from the public, how does it usually pay for the T-bill?
A. By writing a check on a commercial bank account
B. By printing new Federal Reserve notes
C. By creating new reserves in bank accounts
D. By prepaying taxes into the Treasury’s account
Answer: C
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If the growth rate of population is greater than a nation's growth rate of real GDP, then its real GDP per person
A) falls. B) rises. C) does not change. D) might rise, fall, or not change. E) cannot be measured.
One reason why consumers are unlikely to be too upset about tariffs is because
A) most consumers benefit from protection. B) tariffs are an inexpensive way to create jobs. C) consumer losses are not real losses. D) the costs are so spread out that no one pays a big share of the total. E) the gains of producers are larger.
A unit tax of $1 will always
A) shift the supply curve upward by more than $1. B) shift the supply curve upward by less than $1. C) shift the supply curve up by exactly $1. D) leave the supply curve unchanged.
If consumer incomes go up and Harley Davidson motorcycles are a normal good, the effect on the demand for motorcycles, ceteris paribus, will be a(n):
a. upward movement along the demand curve for motorcycles. b. downward movement along the demand curve for motorcycles. c. rightward shift in the demand curve for motorcycles. d. leftward shift in the demand curve for motorcycles.