When the Federal Reserve buys U.S. government securities on the open market, this tends to ____ bank reserves and ____ the money supply.
A. raise; raise
B. lower; lower
C. raise; lower
D. lower; raise
A. raise; raise
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
The quantity equation implies that any decrease in the money supply has to lead directly to:
A. an increase in P. B. a decrease in P. C. an increase in Y. D. a decrease in Y. AACSB: Reflective Thinking
In a union shop
A. no one is forced to join the union. B. an employer may hire only union members. C. all employees must join the union, usually within 30 days after they are hired.
The textbook cites a study comparing a group of consumers with first-dollar coverage to a group with a $1,000 deductible. The study results indicate that those with the deductible spent _____ on health care and had ________ health outcomes relative to those with first-dollar coverage.
A. more; better B. more; the same C. less; worse D. less; the same