An open market sale of securities will tend to cause
A) a reduction in the supply of central bank money.
B) a reduction in the demand for currency.
C) a reduction in the demand for reserves.
D) none of the above
A
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KFC raises the price of its grilled chicken. The price elasticity of demand for KFC grilled chicken is 0.8. What happens to the KFC's total revenue?
A) nothing B) It increases. C) It decreases. D) It becomes negative. E) It might change, but more information is needed to determine if it increases, decreases, or does not change.
The unemployment rate is the percentage of the:
a. civilian labor force that is unemployed or working part-time. b. civilian labor force that is unemployed. c. civilian labor force that is unemployed less the number of government workers. d. adult population that is unemployed. e. adult population that is unemployed or looking for a better job.
The Clinton Administration, faced with eight years of uninterrupted prosperity was chronically worried about inflation and thought of applying countercyclical fiscal policy but was nervous about doing so because
a. it was politically incorrect to raise taxes b. it was politically incorrect to cut government spending c. countercyclical policy had never worked before d. it didn't know where the economy would be in six months and was afraid that the countercyclical policy they would introduce would be an inappropriate one e. there was no administrative lag that it can use to implement the policy
To avoid subsidies, the government should cap the price for natural monopolies at their:
A. marginal cost. B. fixed cost. C. average total cost. D. average variable cost.