Open market operations are the
A) buying and selling of Federal Reserve Notes in the open market.
B) means by which the Fed supplies the economy with currency.
C) means by which the Fed acts as the government's banker.
D) buying and selling of government securities by the Fed.
E) buying and selling of government securities by the Treasury.
D
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A constant-cost industry
A) is one in which an increase in demand is matched by a proportional increases in long-run supply. B) generates increasing profits whenever demand increases because the new long-run equilibrium price is above the old price even though average costs have not changed. C) has a horizontal long-run supply curve. D) has a downward sloping long-run supply curve.
A budget constraint:
A. shows different bundles of goods that all yield the same total utility. B. shows different bundles of goods that all cost the same amount. C. shows different bundles of goods that all maximize an individual's utility. D. shows how much income is needed to maximize total utility.
Prior to the recession which began in late 2007, the Federal Reserve purchased ________ of the government budget deficit
A) none B) about 50 percent C) a small portion D) all
A decrease in the rental rate of capital can lead to a long run increase or decrease in the number of firms in the industry.
Answer the following statement true (T) or false (F)