To increase the money supply, the Fed might:
a. increase the discount rate and sell bonds in the open market
b. decrease the reserve requirement and buy bonds in the open market.
c. increase the reserve requirement and sell bonds in the open market.
d. increase the discount rate and lower the reserve requirement.
e. sell government securities and increase the discount rate.
b
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Over time Americans have chosen to cook less at home and dine out more. This change in behavior:
A) increases GDP. B) reduces GDP. C) does not affect GDP. D) none of the above
The M1 money supply consists of:
a. only coins and currency held by the nonbank public b. certificates of deposit only. c. coins and currency held by the nonbank public, checkable deposits, and traveler's checks. d. money market mutual fund accounts, savings accounts, and other miscellaneous near-monies. e. only paper currency.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and reserve-related (central bank) transactions become more positive (or less negative). b. The real risk-free interest rate rises, and reserve-related (central bank) transactions become more negative (or less positive). c. The real risk-free interest rate rises, and reserve-related (central bank) transactions remain the same. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The real risk-free interest rate falls, and reserve-related (central bank) transactions become more negative (or less positive).
Allied Business Consultants employs five researchers that each work 8 hour days. In one day the researchers prepared 10 reports for its 2 largest clients. What was Allied Business Consultants' productivity?
a. 10 reports b. 5 reports per client c. 1.25 reports per hour d. 1/4 report per hour