If the Fed wanted to use all four of its major monetary control tools to decrease the money supply, it would
a. buy bonds, reduce the discount rate, reduce reserve requirements, and reduce the interest rate paid on excess reserves.
b. sell bonds, reduce the discount rate, reduce reserve requirements, and reduce the interest rate paid on excess reserves.
c. sell bonds, increase the discount rate, increase reserve requirements, and increase the interest rate paid on excess reserves.
d. buy bonds, increase the discount rate, increase reserve requirements, and increase the interest rate paid on excess reserves.
C
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Which of the following would be included in the consumption component of GDP?
a. Movie ticket sales b. Purchase of a new home c. Purchase of used clothes d. Purchase of a baseball card collection at a yard sale e. Purchase of a chain saw at an auction
One piece of evidence in favor of the efficiency wage model is that some sectors of the economy pay relatively high wages, whereas other sectors pay lower wages. This supports the efficiency wage model as it seems to provide evidence of what?
A. High-wage firms take advantage of delayed-compensation contracts. B. Workers voluntarily provide bonds in case they are caught shirking. C. Unemployment is constant across sectors. D. Dual labor markets exist. E. There are compensating differentials being paid depending on the type of work being done.
A monopoly's output decision depends only on the shape of its marginal cost curve
Indicate whether the statement is true or false
Because of the problem of second-hand smoke, if unregulated, the market for cigarettes would produce a quantity that is too ____ at a price that is too ____ when compared to the socially optimal results
a. low; low b. high; low c. low; high d. high; high