A sale of U.S. government securities by the Fed causes a(n)
A) expansion of the money supply equal to the amount of the securities sold.
B) contraction of the money supply equal to the amount of the securities sold.
C) expansion of the money supply of more than the amount of the securities sold.
D) contraction of the money supply of more than the amount of the securities sold.
D)
You might also like to view...
If Jane can produce 3 pairs of shoes per hour, while Bob can produce 2, then ________ has a(n) ________ advantage in producing shoes.
A. Jane; absolute B. Jane; comparative C. Bob; comparative D. Bob; absolute
If the current level of GDP exceeds full employment, the level of GDP can be reduced by
A) reducing the money supply. B) lowering interest rates. C) increasing spending. D) reducing taxes.
Refer to above figure. Two countries exist in this model, P and R. P is relatively labor (L) abundant, as is evident in the bottom right horizontal axis
If Country P were to be completely specialized in the labor-intensive product, C, it would be producing at point 4. In fact, it produces both C and P, at point 5. The (autarky) relative price of C (in terms of F) of Country P is at point 3; and of Country R at point 1. If trade were to open up between these two countries, which would export C and which would export F? Is this consistent with the Heckscher-Ohlin model? Explain.
If after a change in an allocation it can be demonstrated that the value of the gains exceeds the value of the losses, then the change is said to be potentially efficient.
Answer the following statement true (T) or false (F)