Suppose that the current federal funds rate is above the federal funds target rate. In order to lower the federal funds rate the Fed will ________________ securities on the open market which will ________________ the supply of reserves in the market for reserves, pushing the rate closer to the target rate
A) sell; increase
B) purchase; increase
C) purchase; decrease
D) sell; decrease
B
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Which of the following best represents monitoring and enforcement costs?
A) Dinesh has to spend time and effort to make sure that the chemical factory is living up to the agreed upon bargain that it will reduce the pollution it is releasing into the local river by 50 percent. B) Laila needs to come up with enough cash to pay the owners of the paper manufacturing plant, its attorneys, accountants, and negotiators so that a bargain can be reached with the paper manufacturer to reduce air pollution. C) Esperanza has to spend time and effort locating and organizing all the other people who have been adversely affected by the strong odors emanating from the local slaughterhouse in order to initiate the bargaining process. D) Rafael has to spend time determining whether the fertilizer manufacturer, the lead smelter, or the oil refinery is the cause of pollution seeping into the groundwater in his local community.
If a company that drilled for and produced oil acquired a firm which refined oil into gasoline, this would be referred to as a
A) horizontal merger. B) vertical merger. C) conglomerate merger. D) reverse merger.
Thomas Jefferson argued that the U.S. should adopt the Spanish dollar as the official unit of account because
a. so many colonists came from Spanish-speaking nations. b. it was based on the decimal system. c. it was less prone to inflation than other units of account. d. it was the unit of account used in most European countries.
The free-rider problem makes it unlikely that poverty will be entirely eliminated through private charity
a. True b. False Indicate whether the statement is true or false