If the Fed wishes to increase the money supply it could
a. decrease the discount rate.
b. decrease reserve requirements.
c. buy government securities on the open market.
d. Do any of the above.
d. Do any of the above.
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If variables x and y move up and down together, they are
A) positively related. B) negative related. C) unrelated. D) trend related.
The table above shows techniques that can be used to produce 100 shirts. If the price of an hour of labor is $10 and the price of a unit of capital is $12, then the economically efficient technique is
A) W. B) X. C) Y. D) Z.
Answer the following statements true (T) or false (F)
1. All goods and services produced during the year are added to the total wealth of the nation. 2. Stocks and bonds are counted as part of total wealth. 3. To understand the purpose of a given economic policy, it is necessary to understand the influence of political and social policies. 4. Economics is an isolated science since it has no relation to other sciences.
If the wage rate is $5 per hour, regardless of how many laborers are employed, the
a. labor supply curve is horizontal b. labor supply curve is upward sloping c. MPP must be constant d. labor supply will increase at an increasing rate e. labor supply will increase at a decreasing rate