The Federal Reserve changes the risk-free interest rate most directly:
A. by changing the reserve requirement.
B. by changing the federal funds rate.
C. by changing the discount rate.
D. with open-market operations.
D. with open-market operations.
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Protectionism refers to:
A) subsidizing imports. B) reduction of trade barriers. C) increased export of goods and services. D) reducing the competition faced by domestic firms.
The sum of consumption (C), investment (I), government spending (G), and net exports (X-M) is called:
a. autonomous spending. b. aggregate expenditures. c. Keynesian income d. wealth.
To represent a worker, a union must
a. simply receive the worker's permission b. receive a unanimous approval in an election c. receive a majority of the workers' votes in an election d. receive at least two-thirds of the workers' votes in an election e. receive the permission of the employer
Which of the following would result from an increase in the supply of a good?
A. Both equilibrium price and quantity would rise. B. Both equilibrium price and quantity would fall. C. Equilibrium price would rise, and equilibrium quantity would fall. D. Equilibrium quantity would rise, and equilibrium price would fall.