If the Fed buys U.S. Treasury securities, then this

A) increases reserves, causes banks to reduce their loans, and increases the money supply.
B) decreases reserves, causes banks to reduce their loans, and decreases the money supply.
C) increases reserves, encourages banks to make more loans, and increases the money supply.
D) decreases reserves, causes banks to reduce their loans, and increases the money supply.


C

Economics

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If aggregate planned expenditures exceed real GDP, then

A) inventories increase above their planned levels and businesses decrease their production. B) inventories decrease below their planned levels and businesses decrease their production. C) there is no equilibrium level of real GDP. D) unplanned inventory changes equal zero. E) inventories decrease below their planned levels and businesses increase their production.

Economics

If workers sit idly by for a portion of their workday, but are still employed, ________

A) the negative productivity shock has no effect on output B) it is unlikely that a decrease in aggregate demand is the cause C) aggregate data may create a false illusion of a negative productivity shock D) a negative productivity shock is the most plausible explanation

Economics

The LM curve slopes upward because

a. as income rises, savings rise, increasing output. b. as interest rates rise, the money supply rises, increasing output. c. as interest rates rise, planned investment must fall, increasing output. d. as income increases, money demand rises, which increases interest rates. e. none of the above.

Economics

It can be rational to play tit-for-tat in a repeated Prisoners' Dilemma game

A) only if the game is played an infinite number of times. B) if the game is played an infinite number of times, or if it is uncertain how many times it will be played. C) only if the game is played a finite number of times, and that number is known by all the players in advance. D) for n-1 of the n periods it will be played, if n is known in advance. E) at no time; tit-for-tat is an irrational strategy in this situation.

Economics