Which of the following does the federal reserve use most often to combat a recession?

a) selling securities
b) buying securities
c) reducing reserve requirement
d) increasing discount rate
e) increasing federal funds rate


Ans: b) buying securities

Economics

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Paul Bergen and Virginia Clancy each own a 100-acre soybean farm in Soyburg, Illinois. Together they grow 1/1000th of 1 percent of the nation's soybeans. When they merge, it will:

a. b and e. b. be a horizontal merger. c. reduce competition in the soy market. d. increase the market power of Paul and Virginia. e. probably go unnoticed outside of Soyburg.

Economics

Personal income taxes:

a. make recessions and inflationary episodes more severe. b. make recessions and inflationary episodes less severe. c. make recessions more severe and inflationary episodes less severe. d. make recessions less severe and inflationary episodes more severe. e. have no effect on the severity of recessions and inflationary episodes.

Economics

Which of the following is the best definition of economics?

a. An investigation of the quantities and prices of the various goods produced by the nations of the world. b. A study of why inflation and unemployment periodically plague the U.S. economy. c. An analysis of how individuals and societies deal with the problem of scarcity. d. An examination of the role that money plays in the economy. e. A study of how goods and services are distributed throughout the world.

Economics

Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes.

src="https://sciemce.com/media/4/ppg__1420829190927__f1q536g1.jpg" alt="" style="vertical-align: 0.0px;" height="95" width="382" />If three stores were to open sequentially, you would expect that those stores would be located: A. in a cluster, near the location chosen by the first store to locate. B. at points A, B, and C. C. halfway between the mountains and A, halfway between A and B, and halfway between B and C. D. in a cluster, nearest the mountains.

Economics