If the Fed sells $1 billion of short-term securities issued by the Bank of Japan and at the same time purchases $1 billion of short-term securities issued by the U.S. Treasury,
A) the monetary base will decline by $1 billion.
B) the monetary base will rise by $1 billion.
C) the Fed has conducted an unsterilized foreign-exchange intervention.
D) the Fed has conducted a sterilized foreign-exchange intervention.
D
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How a sales tax is divided between buyers and sellers is determined by
A) the government's choice of whom to tax. B) who the law says must pay the tax. C) the elasticities of supply and demand. D) the revenue needs of government.
Suppose that the Federal Reserve (Fed) wishes to implement an expansionary (loose) policy to increase economic growth in the U.S. economy. Which policy would the Fed most likely adopt?
Increase income taxes Increase interest rates Reduce interest rates and increase money supply reduce the money supply
"Duty-free" shops in airports and on international boats sell merchandise that can be brought into the country without which of the following?
(A) Restrictions on resale (B) Political embargoes (C) Import tariffs (D) Restrictions on quantity
The change in total output associated with one additional unit of input is the
A. Average productivity. B. Marginal cost. C. Opportunity cost of the output. D. Marginal physical product.