Which of the following policy action by the Fed is likely to cause the money supply to increase?
A. An open market sale
B. An increase in required reserve ratios
C. An increase in the discount rate
D. An open market purchase.
C. An increase in the discount rate
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Mark works as a business development officer for a leading electronics company. His main task is to meet potential clients in their respective offices and try to enter into a business deal with them
Irrespective of the number of clients approached and deals made, Mark earns a fixed salary every month. Because his boss does not cross-check how many clients he meets in a day, Mark often does not meet all the clients that he is supposed to. His behavior is an example of ________. A) adverse selection B) moral hazard C) a positive externality D) a pecuniary externality
In which of the following would the richest tenth of the population be most likely to receive the highest percentage of the country's income?
A. Namibia. B. The United States. C. Japan. D. The United Kingdom.
Bill lives in Montana and likes to grow zucchini. He applies fertilizer to his crops twice during the growing season and notices that the second layer of fertilizer increases his crop, but not as much as the first layer. What economic concept best explains this observation?
A. The law of diminishing marginal utility. B. The law of diminishing returns. C. Return equalization principle. D. The principal-agent problem.
Historical analysis of real interest rates in the United States shows that
A) real interest rates were unusually low in both the 1970s and 1980s. B) real interest rates were unusually high in both the 1970s and 1980s. C) real interest rates were unusually low in the 1970s and unusually high in the 1980s. D) real interest rates were unusually low in the 1980s, spurring the economic growth that occurred during the Reagan administration.