If unemployment is a problem, the Fed could ______ bonds and ______ the reserve requirement.
A. buy; increase
B. buy; decrease
C. sell; increase
D. sell; decrease
B. buy; decrease
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According to the graph, what is the reduction in U.S. lumber consumption as a result of the tariff?
a. 700,000 board feet
b. 100,000 board feet
c. 200,000 board feet
d. 300,000 board feet
The creation of a separate legal being implies the business
a. has an existence independent of its owners b. is partially owned by the government c. must abide by federal law d. will be regulated by the government e. does not have to abide by state law
Suppose that rising productivity increases potential output in each period by 4%. What kind of monetary policy would be needed to maintain a zero rate of inflation at full employment?
A. It should keep money supply constant. B. It should increase money supply by 4% in the first period and thereafter, hold money supply constant. C. It should increase money supply by 4% per period. D. It should decrease money supply by 4% each period.
Externalities consist of ____________________.
A. Only external costs B. Only external benefits C. Both external costs and external benefits D. None of these answers are correct.