If the Fed wishes to reduce nominal interest rates, it must engage in an open market ________ of bonds to ________ the money supply.
A. sale; decrease
B. purchase; decrease
C. sale; increase
D. purchase; increase
Answer: D
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If a firm's marginal cost curve is very steep in the short-term, but much flatter in the long-term, all else equal a ________-term forecast is likely to be more valuable than a ________-term forecast.
A) short; long B) long; extended C) short; extended D) long; short
Assume Jean-Claude purchased real estate for $500,000 using $50,000 of which is his own money and $450,000 of which he borrowed at an 8 percent interest rate. If the value increased by 10 percent in one year and he sold the property, what was Joe’s rate of return on his investment? If the value of the property had declined by 2 percent, what would have been the rate of return on his investment?
What will be an ideal response?
Studies of real world markets suggest that prices and the number of firms of comparable size in a market are:
A. positively related. B. negatively or inversely related. C. not related. D. sometimes negatively or inversely related, but usually positively related.
Describe how near-monopoly behavior in internet industries has fostered aggressive competition
What will be an ideal response?