If the economy is in an inflationary boom, the Fed would most likely
a. encourage banks to provide loans by buying government securities.
b. encourage banks to provide loans by raising the discount rate.
c. encourage banks to provide loans by selling government securities.
d. restrict bank lending by selling government securities.
e. restrict bank lending by lowering the federal funds rate.
D
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When a deadweight loss occurs in a market, we can be certain that
A) taxes have been imposed in a market. B) the market is a monopoly. C) there underproduction in the market. D) the entire society experiences a loss.
In the above figure, a price of $15 per dozen for roses would result in
A) equilibrium. B) a shortage. C) a surplus. D) downward pressure on prices.
The unemployment rate is an important economic statistic that can tell us about the health of the economy. If the unemployment rate turns out to be high or higher than anticipated, we would expect
A) that jobs are less difficult to find. B) that investors will be more optimistic about the economy. C) that stock prices are more likely to fall. D) it is more likely that an incumbent president will be re-elected.
Daily foreign exchange transactions have grow from about $15 billion in 1973 to about $4 trillion today
Indicate whether the statement is true or false