The Fed has which of the following as its strongest control over the money supply?
A. Interest rate changes
B. The discount rate
C. Open-market operations
D. The required reserve rate
Answer: C
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
According to the New Classical theory, why may output differ from its full-employment level in the short run?
What will be an ideal response?
In Exhibit 11-5, at what wage rate will the firms stop hiring these workers?
A. $25.00. B. $20.00. C. $15.00. D. $10.00.
Selfishness is:
A. exhibited more strongly in the ultimatum game than in the dictator game. B. exhibited more strongly in the dictator game than in the ultimatum game. C. exhibited equally strongly in both the ultimatum and dictator games. D. rarely exhibited in either the ultimatum or dictator games.