The Fed's decision to concentrate more on interest rates in conducting near-term monetary policy
A) was the result of deregulation and innovation in financial markets.
B) was necessitated by the inability to identify a stable demand for money.
C) is sometimes misrepresented by the media as the Fed "setting" interest rates.
D) all of the above.
D
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In the short run, to decrease the interest rate, the Federal Reserve ________ the quantity of money by ________ government securities
A) decreases; buying B) increases; selling C) decreases; selling D) increases; buying E) None of the above answers is correct because in the short run, the Federal Reserve cannot change the interest rate.
The natural rate of unemployment is
a. the rate of unemployment caused by frictional plus structural unemployment b. the actual rate of unemployment less structural unemployment c. structural, frictional, and cyclical unemployment d. full employment less structural unemployment e. the civilian population that is out of work and actively seeking a job
Which of the following is most likely to be an implicit cost of production?
a. property taxes on a building owned by the firm b. transportation costs paid to a trucking supplier c. rental payments for a building utilized by the company and rented from another party d. interest income foregone on funds invested in the firm by the owners
Which of the following actions by the Fed would increase the money supply?
a. Reducing the required reserve ratio. b. None of the answers are correct. c. Selling government bonds in the open market. d. Increasing the discount rate.