If the Fed conducts open-market purchases, then which of the following quantities increase(s)?

a. interest rates and investment spending
b. interest rates, but not investment spending
c. investment spending, but not interest rates
d. neither interest rates nor investment spending


c

Economics

You might also like to view...

The cost of group health insurance is lower than if an individual buys a policy on his own because

A) moral hazard costs of a group tend to move to a low average. B) insuring a group eliminates the problem of buyers having more information than the seller. C) it is easier for the company to deny claims from a large group. D) the problem of adverse selection is reduced.

Economics

Which of the following markets is continuously in operation and not set in a single venue or restricted to certain dates or times?

a. The U.S natural gas industry b. The San Francisco Wholesale Produce Market c. The U.S. real estate market d. An art exhibition

Economics

In the long run, if the Fed lowers the inflation rate and holds it at that new rate,

a. a zero inflation rate will be reached b. a recession will not occur c. inflationary expectations will fall d. the natural rate of unemployment will rise e. structural unemployment will start to decrease

Economics

Suppose that some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were unemployed?

a. 0.846 million b. 0.9 million c. 1.5 million d. 6 million

Economics