If the FOMC decides that the Fed should buy bonds it
A) instructs the New York Federal Reserve Bank's trading desk to buy them.
B) asks the Congress for permission to buy them.
C) requires the permission of the Financial Oversight Committee.
D) requires the President's signature on the buy order.
A
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
In a market economy, what specifies the terms of exchange, facilitating exchange between strangers?
A) contracts B) insurance C) patents D) accounting rules
The Community Charge was a poll tax to fund local government in the United Kingdom, instituted in 1989 by the government of Margaret Thatcher. It replaced the rates that were based on the national rental value of a house
It was a fixed tax per adult resident. Is this tax a proportional, progressive or regressive tax? Explain your answer.
Dante has two possible routes to travel on a business trip. One is more direct but more exhausting, taking one day but with a probability of business success of 1/4. The second takes three days, but has a probability of success of 2/3
If the value of Dante's time is $1000/day, the value of the business success is $12,000, and Dante is risk neutral, A) it doesn't matter which path he takes, because he doesn't consider risk. B) he should take the 1-day trip, because he doesn't consider risk. C) he should take the 1-day trip, because $11,000 is greater than $9,000. D) he should take the 3-day trip, because it will increase his expected net revenue by $3,000. E) he should take the 3-day trip, because it will increase his expected net revenue by $5,000.