If the Fed lowers the discount rate at the same time it conducts an open market sale, it follows that
A) the money supply will fall.
B) the money supply will rise.
C) the money supply will remain unchanged.
D) cash leakages will rise.
E) There is not enough information to answer this question.
E
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Which one of the following is TRUE about the effects of fiscal policy?
A) A decrease in government spending will decrease aggregate demand. B) A tax change does not have any direct or indirect effects on aggregate demand. C) A decrease government spending will increase aggregate supply. D) An increase in government spending will reduce aggregate demand.
When there is a threat of inflation in the economy, the Fed can ________ the federal funds rate to ________ aggregate demand and ________ the price level
A) raise; decrease; decrease B) lower; increase; increase C) lower; increase; decrease D) raise; increase; decrease E) raise; decrease; increase
Who made this statement? "The really exhausting and the really repulsive labours, instead of being better paid than others, are almost invariably paid the worst of all…. The hardships and the earnings, instead of being directly proportional, as in any just arrangements of society they would be, are generally in an inverse ratio to one another."
A. John Stuart Mill B. John Maynard Keynes C. Elizabeth Warren and Amelia Warren Tyagi D. Beth Schulman
If sellers have more information about the quality of goods than do buyers, then:
A. sellers of better-than-average goods will have difficulty getting their asking price. B. buyers will never make purchases. C. buyers always will be exploited. D. sellers of lower-than-average goods will have difficulty getting their asking price.