If there is currently an inflationary gap in the economy the Fed could work toward recovery through an open market sale of government securities
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Would a profit-maximizing firm sell where demand is inelastic?
A. No, this would not follow the rule of MC = MR. B. No, the firm could not profitably raise price. C. Yes, the firm could profitably lower price to attract sales. D. Yes, in this case there are few substitutes for the good.
Conflict resolution of the stockholder-lender conflict in smaller market-oriented firms is most effectively accomplished by
A) financial intermediation (monitoring). B) financial intermediation (ownership consolidation). C) rating agencies. D) managerial compensation.
The law of diminishing returns assumes that
A) there is at least one fixed input. B) all inputs are changed by the same percentage. C) additional inputs are added in smaller and smaller increments. D) all inputs are held constant.
A point outside a society's production possibilities curve is one that is
A) unattainable given the resources of the society. B) technologically inefficient. C) undesirable given the implied underemployment of resources. D) desirable since it satisfies the desires of the population.