If the Federal Reserve increases the money supply, ceteris paribus, the:
a. rate of interest decreases.
b. rate of interest increases.
c. rate of interest is unaffected.
d. Fed sells bonds.
a
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In the factor market, firms ________ and households ________
A) hire land, labor, capital, and entrepreneurship services; purchase goods and services B) supply land, labor, capital, and entrepreneurship services; hire land, labor, capital, and entrepreneurship services C) pay rent, wages, interest, and profit; earn rent, wages, interest, and profit D) purchase goods and services; supply goods and services E) supply goods and services; purchase goods and services
A situation in which a country does not take part in international trade is known as
A) autarky. B) openness neglect. C) indifference tradeoff. D) protectionist point.
If unemployment is the most significant problem in the economy, which of the following actions would be an appropriate fiscal policy response?
a. decrease taxes b. decrease government purchases c. decrease the federal deficit d. all of the above
The slope of a consumer's indifference curve between two commodities represents
a. her marginal rate of substitution between the commodities. b. the relative prices of the goods. c. her marginal revenue from selling the commodities. d. her marginal revenue product from consuming the commodities.