When the Fed buys government securities, it:
a. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public.
b. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public.
c. increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public.
d. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
e. decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.
c
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Moving ________ the short-run Phillips curve is equivalent to moving ________
A) downward along; downward along the aggregate demand curve B) downward along; downward along the potential GDP line C) downward along; upward along the aggregate demand curve D) downward along; upward along the potential GDP line E) upward along; upward along the aggregate supply curve
Refer to Table 19-19. Given the information above, calculate the GDP deflator in 2015
A) 87 B) 95 C) 105 D) 114
If renting videos is an inferior good, demand for this service will rise when consumer income falls
a. True b. False Indicate whether the statement is true or false
"In the long run, there are no fixed costs.". Explain the statement