The Fed's open market operations involve
a. buying and selling of government bonds
b. changes of the discount rate
c. setting the required reserve ratio
d. buying and selling corporate bonds
e. a policy of last resort used to avert a financial crisis
A
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Current account is given by the equation:
A) CA = IM - EX (measured in terms of domestic output). B) CA = IM - EX (measured in terms of foreign output). C) CA = EX - IM (measured in terms of domestic output). D) CA = EX - IM (measured in terms of foreign output). E) CA = EX + IM (measured in terms of domestic output).
For a perfectly competitive firm, the long-run supply curve is its long-run marginal cost curve.
Answer the following statement true (T) or false (F)
A graphical plot of consumption expenditures against disposable income for the US over the past 20 years shows
a) no apparent relationship between consumption and disposable income b) consumption remaining roughly constant as disposable income rises c) consumption falling as disposable income rises d) consumption rising as disposable income has fallen e) consumption rising almost proportionately as income rises
An investment decision involves choosing
A. The amount of plants and equipment and is a short-run decision. B. A rate of output and is a short-run decision. C. The amount of plants and equipment and is a long-run decision. D. A rate of output and is a long-run decision.