When the Fed conducts open-market purchases,
a. it buys Treasury securities, which increases the money supply.
b. it buys Treasury securities, which decreases the money supply.
c. it borrows money from member banks, which increases the money supply.
d. it lends money to member banks, which decreases the money supply.
a
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In a market economy, opportunity costs are always synonymous with explicit monetary costs.
Answer the following statement true (T) or false (F)
Structural unemployment usually lasts ________ period of time ________ unemployment
A) a longer; than frictional B) a shorter; than frictional C) a shorter; than seasonal D) a shorter; than cyclical E) the same; as cyclical
A turning point is
A) a change in policy. B) a peak or a trough. C) a boom or a recession. D) a zero deviation from trend.
_____ refers to an enforceable set of promises to take certain actions over the future
a. A bond b. A contract c. A capitation fee d. A collusion