The three main monetary policy tools used by the Federal Reserve to manage the money supply are
A) interest rates, tax rates, and government spending.
B) open market operations, discount policy, and reserve requirements.
C) tax rates, government purchases, and government transfer payments.
D) open market operations, the exchange rate of the dollar against foreign currencies, and government purchases.
B
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Government spending plays no role in meeting our social and public needs.
Answer the following statement true (T) or false (F)
You purchased an automobile two years ago for $10,000 . Its current market price is $5,000 . and the expected market value one year from now is $4,500 . If the interest rate is 10 percent, how much will it cost you to keep the car for an additional year (over and above operation and maintenance costs)?
a. $500 b. $1,000 c. $1,500 d. $5,000
Suppose we were analyzing the Turkish lira per euro foreign exchange market. If The Euro-Area's central bank intervenes to reduce the value of the euro, then:
a. The supply of euros in the foreign exchange market rises, and the euro-Area's monetary base rises. b. The supply of euros in the foreign exchange market rises, and the euro-Area's monetary base falls. c. The demand for euros in the foreign exchange market rises, and the euro-Area's monetary base rises. d. The demand for euros in the foreign exchange market rises, and the euro-Area's monetary base falls. e. The demand for euros in the foreign exchange market rises, and the euro-Area's monetary base remains unchanged.
Knowledge is an example of a
a. public good. b. private good. c. common resource. d. club good.