Since the minimum food budget used to determine the poverty line is not adjusted for changes in the standard of living, it is, in principle:
A. a relative measure of poverty.
B. an optimal measure of poverty.
C. an inaccurate measure of poverty.
D. an absolute measure of poverty.
Answer: D
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To have an effect on the market price, price ceilings must be set above the equilibrium price. ?
Answer the following statement true (T) or false (F)
The above figure gives your budget line between CDs and magazines. Which of the following changes would NOT allow you to buy more CDs?
A) a decrease in the relative price of CDs B) an increase in income C) a decrease in the price of magazines with no change in the price of CDs D) None of the above answers is correct because all of the above changes allow you to buy more CDs.
A Federal Reserve repurchase agreement involves
A) an agreement by a bank to repay a discount loan on a specific day. B) an agreement by a dealer to buy back securities she has sold to the Fed. C) an agreement between the Fed and the Treasury for the Fed to purchase a specified amount of Treasury securities. D) an agreement by a commercial bank to make a loan to another bank in the federal funds market.
If the Fed wishes to reduce unemployment during a recession then it should
a. increase the discount rate. b. decrease reserve requirements. c. sell government securities on the open market. d. Do any of the above.