In its conduct of open market operations, the Fed now buys and sells
a. only U.S. government securities.
b. only mortgage-backed securities issued by large investment banks.
c. a wide range of assets including the stock shares of large banks, domestic automobile manufacturers, and high-technology business firms.
d. a wide range of assets including corporate bonds and mortgage-backed securities.
D
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Suppose Joe can prepare 20 sandwiches or 10 pizzas in an hour and Beth can produce 36 sandwiches or 27 pizzas. The concept of comparative advantage concludes that
A) Beth should produce both goods because she can produce more of both goods in an hour than can Joe. B) Beth should produce sandwiches and Joe should produce pizza. C) Beth should produce pizza and Joe should produce sandwiches. D) Beth should produce both goods and Joe should produce sandwiches.
The Fed can use expansionary monetary policy to lower interest rates to stimulate aggregate demand
Indicate whether the statement is true or false
The U.S. dollar exchange rate describes the
a. the deficit/surplus situation in the balance of payments. b. the price of a foreign currency in terms of dollars. c. the deficit/surplus situation in the merchandise trade balance. d. future changes in foreign balance of payments. e. none of the above.
The In the News article titled "Great Recession Officially Ended Last Year" came out over a year after the recession was statistically declared over. Which of the following obstacles does this article address?
A. Implementation problems. B. Measurement problems. C. Design problems. D. Goal conflicts.