If the Fed wants to lower the money supply
A) it should lower the discount rate.
B) it should buy bonds.
C) it should lower the reserve requirement.
D) it should sell bonds.
D
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Suppose the following information describes the economy:Government purchases of goods and services1,000Household saving1,000Government transfers and interest payments500Tax collections500Business saving1,500Private saving equals ____and public saving equals ________.
A. 2,500; 0 B. 2,500; -1,000 C. 1,000; -500 D. 1,000; 0
Secular deflation
A. cannot exist in a capitalistic economy. B. has been a serious problem during the last three decades in the United States. C. has not been present in the United States since 1960. D. although present, has not been a problem during the last three decades in the United States.
Which of the following is NOT a disadvantage of a proprietorship?
A. ability to raise capital B. the disposition of the firm when the owner dies C. how profits are taxed D. unlimited liability
Which of the following statistics is the best single measure of overall economic activity?
A) The labor force participation rate. B) The inflation rate. C) GDP. D) The trade surplus.