The Fed's countercyclical policy during the expansion and prosperity phases of the business cycle includes
a. raising the legal reserve requirement, raising the discount rate, and selling government bonds on the open market
b. raising the legal reserve requirement, raising the discount rate, and buying government bonds on the open market
c. raising the legal reserve requirement, cutting the discount rate, and selling government bonds on the open market
d. raising the legal reserve requirement, cutting the discount rate, and buying government bonds on the open market
e. lowering the legal reserve requirement, cutting discount rates, and buying government bonds on the open market
A
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Assume that seigniorage and the government's primary deficit are both zero. A change in the debt-to-GDP ratio depends on just
A) the rate of inflation and total factor productivity. B) the growth rate of real GDP and the real interest rate. C) the growth rate of the money supply and the nominal interest rate. D) the growth rate of nominal GDP and the rate of inflation.
When TR is increasing as a monopolist's output increases
A) MR is negative. B) MR is positive. C) MR = 0. D) MR may be positive or negative.
In a common-value auction
a. No bidder knows what the exact value of the item being auctioned b. Each bidder knows the exact value of the item c. The value is different for each bidder d. All of the above
Which of the following actions can be categorized as rent seeking?
a. Increase in the income tax rates by the government b. Lobbying efforts of individuals or groups to gain favors from the government c. Profit maximizing firms charging a price greater than their marginal costs d. Export of goods from developing to developed countries e. Government intervention in the real estate market