The Fed's sale of U.S. government securities in its open market operations constitutes
a. a restrictive policy because it lowers the amount of total reserves in the banking system.
b. a restrictive policy because it raise the amount of required reserves in the banking system.
c. an expansionary policy because it raises the amount of total and excess reserves in the banking system.
d. an expansionary policy because it raises the amount of excess reserves and lowers the amount of required reserves in the banking system.
e. an expansionary policy because it raises the amount of required reserves in the banking system.
A
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When would the price be highest: when the utility is not regulated, when it is regulated using an average cost pricing rule, or when it is regulated using a marginal cost pricing rule? When would its price be lowest?
The production possibilities curve shows different combinations of goods that:
a. can be consumed by households. b. can be consumed by firms. c. can be produced with the available technology. d. are produced and consumed by firms. e. are bought and sold in the market.
A normative statement: a. describes the self-interested behavior of individuals
b. describes the world as it is. c. describes how the world should be. d. describes how sunk costs do not affect current decisions.
Which of the following is not a monetary policy tool of the Fed?
A) changing the required reserve ratio B) changing the discount rate C) setting the price level and the market rate of interest D) conducting open market operations