If the Fed buys a T-bill from a commercial bank, how will it pay for the T-bill?
a. It will give the bank new reserves.
b. It will write the bank a check.
c. It will transfer cash to the bank's vault.
d. It will take reserves from another bank.
A
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Taxpayers and consumers end up paying for agricultural price supports
a. True b. False
If ten cases of spring water are sold at a price of $6 each in a perfectly competitive output market and the marginal product of the last unit of labor is 5, then the marginal revenue product of that last unit of labor is
a. $60 b. $30 c. $50 d. $2 e. 60 cents
A credible threat is:
A. legally enforceable. B. in the threatener's interest to carry out. C. not in the threatener's interest to carry out. D. possible to carry out.