Contractionary monetary policy is achieved? by:
A) decreasing the amount of bank reserves and lowering the federal funds rate.
B) decreasing the amount of bank reserves and raising the federal funds rate.
C) increasing the amount of bank reserves and lowering the federal funds rate.
D) increasing the amount of bank reserves and raising the federal funds rate.
Answer: B) decreasing the amount of bank reserves and raising the federal funds rate.
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How do taxes and government cash transfer payments alter the measured distribution of income?
a. Taxes, because they are included in the official data on income distribution, are reflected in the data, but cash transfer payments, which redistribute income to lower income households, are not included. b. Cash transfer payments are included in the official data on income distribution, but taxes are not. c. Both taxes and cash transfer payments are included in the official data on income distribution d. Neither taxes or cash transfer payments are included in the official data on income distribution
If nominal GDP increased from $4,500 billion in 2010 to $5,000 billion in 2011 and the GDP deflator increased from 100 to 105 over the same time period, what would the 2011 real GDP equal expressed in terms of 2010 dollars?
a. $4,285 billion b. $4,500 billion c. $4,725 billion d. $4,762 billion
The statement that "IBM's stock closed at $85" is
a. a normative statement b. a positive statement c. a macroeconomic observation d. financial manipulation e. a sign that the market may be undervalued
In a risk-benefit analysis of pesticide use,
a. benefits are the gains from eliminating or reducing pesticide use b. benefits can be measured as the change in producer and consumer surpluses linked to increasing supply due to enhanced crop yields c. the data needed to estimate benefits are readily obtainable d. secondary benefits, such as improved worker productivity, are not relevant