Stabilization policy often faces a trade-off between inflation and unemployment
a. True
b. False
Indicate whether the statement is true or false
True
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If Treasury deposits at the Fed are predicted to fall, the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves
A) defensive; inject B) defensive; drain C) dynamic; inject D) dynamic; drain
Your best friend calls and gives you the latest stock market "hot tip" that he heard at the health club. Should you act on this information? Why or why not?
What will be an ideal response?
The Federal Reserve System is a(n)
a. corporation owned by its member banks. b. independent branch of the U.S. government. c. corporation owned by the government and member banks. d. agency created by presidential executive order.
When economic losses are present in a market, firms will tend to
a. exit from the market. b. raise their prices until the break-even point is reached. c. lower their prices, regardless of cost, so they can capture more of the market. d. increase output.