Which of the following generally occurs when a central bank pursues contractionary monetary policy?
A) the central bank purchases bonds and the interest rate increases.
B) the central bank purchases bonds and the interest rate decreases.
C) the central bank sells bonds and the interest rate increases.
D) the central bank sells bonds and the interest rate decreases.
C
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Refer to Table 18.1. After trade begins, ________ will specialize in the production of hats and ________ will specialize in the production of gloves
A) Panama; Russia B) Russia; Panama C) Russia; Russia D) Panama; Panama
The excess burden of the corporate income tax is
A. almost zero. B. greatest when the interest elasticity of saving is zero. C. a result of the combined distortion in the pattern of investment and a reduction in total investment. D. none of these answer options are correct.
Maryanne expects to work for another 30 years and expects to live another 10 years after she retires
If Maryanne completely smooths consumption over her lifetime, for every $1,000 increase in disposable income, she will use ________ for consumption each year. A) $100 B) $333 C) $667 D) $750
Justin is trying to decide whether he wants to spend a $50 birthday check on a new DVD player or tickets to a concert. If he chooses the DVD player, what is the opportunity cost of this decision?
A. Birthday check B. DVD player C. Concert tickets D. $50