When the Fed buys government bonds,
a. the money supply increases and the federal funds rate increases.
b. the money supply increases and the federal funds rate decreases.
c. the money supply decreases and the federal funds rate increases.
d. the money supply decreases and the federal funds rate decreases.
b
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As a possible approach to eliminating the government budget deficit, increasing taxes for everyone would
A) mean only a small increase in taxes. B) transfer more goods and services to the government sector. C) lead to a large increase in taxes for every worker. D) lead to an inflationary ga
The price elasticity of demand for Kellogg's Raisin Bran is larger in absolute value than the price elasticity of demand for all breakfast cereals
Indicate whether the statement is true or false
The composition of demand and supply is relatively unimportant to the study of inflation and unemployment rates.
Answer the following statement true (T) or false (F)
Which of the following would be an implicit cost for a business owner?
A. The $40,000 profit for this fiscal year B. The $10 per unit cost for production of widgets C. The $50,000 salary the entrepreneur could be making as a CPA D. The $1500 electric bill for his business