Open market purchase of government securities results in:
A) an increase in bank reserves.
B) a decrease in bank reserves.
C) an increase in interest rates.
D) none of the above.
A
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Which of the following macroeconomic variables would likely be affected by a fiscal policy?
a. The nominal interest rate b. The exchange rate c. The discount rate d. Employment e. Money supply
Oligopoly occurs when
A. a few firms sell many different products. B. a few firms sell to a few large buyers. C. many firms dominate a single market. D. a few firms dominate a single market.
Free markets allocate (a) the supply of goods to the buyers who value them most highly and (b) the demand for goods to the sellers who can produce them at least cost
a. True b. False Indicate whether the statement is true or false
Labor productivity is calculated by dividing GDP by
A. population. B. the price level. C. capital stock D. labor force.