When the Fed purchases bonds, the Fed:
A. increases the reserves and the federal funds rate decreases.
B. increases the reserves and the federal funds rate increases.
C. reduces the reserves and the federal funds rate increases.
D. reduces the reserves and the federal funds rate decreases.
Answer: A
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A) after-tax income minus consumption expenditures B) a flow variable which adds to the stock of wealth C) the private saving rate times disposable income D) all of the above E) none of the above
Which of the following statements is NOT true regarding DeBeers' rise to monopoly power in the diamond market?
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Rapid increases in military spending by the federal government without accompanying increases in real output could be a cause of cost-push inflation
a. True b. False Indicate whether the statement is true or false
The benefits of international trade include
a. more choice for consumers b. efficiency gains from specialization c. more competition d. all of the above e. (a) and (c) only