At the time of its founding, which tool was thought to be the most useful for the Fed?
a. changing the reserve requirement
b. altering deposit interest rates
c. lending to banks
d. open market operations
c
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Which of the following lists includes only capital resources (and therefore no labor or land resources)?
A. an ice arena; a professional hockey player; hockey uniforms B. a hydroelectric dam; water behind the dam; power lines C. the owner of a new startup firm; a chemistry lab; a researcher D. automobiles owned by a car rental firm; computers at the car rental agency; the vans that shuttle rental customers to and from the airport
By monitoring financial diaries of several of the world's poorest families, economists found that a challenge facing the poor was:
A. their income fluctuated a lot, in addition to being low. B. they did save any money to pay down debts. C. they often did not diversify their savings and had "their eggs all in one basket". D. All of these are true.
What is meant by saying that automatic fiscal policy is countercyclical?
What will be an ideal response?
In Figure 42.1, what is the price an unregulated monopolist will charge? 
Figure 42.1
A. P1 B. P2 C. P3 D. P4