Open market operations involve the Fed
A. Borrowing money from a bank.
B. Buying or selling shares of stock.
C. Lending money to individuals.
D. Buying or selling government bonds.
Answer: D
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A law requiring the government to balance its budget in each year would serve as an automatic destabilizer
Indicate whether the statement is true or false
If the dollar interest rate is 10 percent, the euro interest rate is 6 percent, then
A) an investor should invest only in dollars if the expected dollar depreciation against the euro is 4 percent. B) an investor should invest only in euros if the expected dollar depreciation against the euro is 4 percent. C) an investor should be indifferent between dollars and euros if the expected dollar depreciation against the euro is 4 percent. D) an investor should invest only in dollars. E) an investor should invest only in euros.
The 19th century frontier, as technically defined in census reports, was any area
a. west of the Appalachian Mountains. b. containing more than two and less than six people per square mile. c. without a sheriff and recognized local government. d. that had not been surveyed according to provisions of the Land Ordinance of 1785.
If the money supply equals 1,000, velocity equals 5, and real GDP equals 2,500, then the price level equals:
A. 5. B. 2. C. 5,000. D. 2.5.