In late 2007 and early 2008, concerns about financial institutions led the Fed to
A) create special lending facilities.
B) raise the target for the fed funds rate.
C) increase reserve requirements.
D) pay interest on bank reserves.
A
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Suppose the equilibrium quantity of movie tickets is 1000. If the demand curve shifts ________, the equilibrium quantity of movie tickets will ________
A) leftward; increase B) rightward; decrease C) rightward; not change D) leftward; not change E) rightward; increase
Allocative efficiency requires that
a. MC equals ATC. b. MC equals P. c. AR equals AFC. d. MC equals MR.
Which of the following transactions would be included in the U.S. balance of payments?
a. A U.S. resident buys a bus ticket from Dallas to El Paso, Texas. b. U.S. manufacturers sell thousands of cars to Canadian buyers. c. A U.S. resident pays a fee to obtain a passport to travel abroad. d. Canadian oil companies pay a Dutch firm to design an oil pipeline.
One HEADLINE article in the text suggest that 30 percent of Americans trust the federal government to do the right thing. If government intervention makes the economy worse off, this is referred to as:
A) Government failure. B) Market failure. C) Central planning. D) Scarce resources.