Open-market operations are:
A. operations that allow any bank to borrow reserves from the Fed at a special interest rate, called the discount rate.
B. the purchase and sale of financial instruments on the open market.
C. regulations that set the minimum fraction of deposits banks must hold in reserve.
D. sales or purchases of government securities, by the Fed, to or from banks on the open market.
Answer: D
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The table above gives the aggregate demand and aggregate supply schedules in Lotus Land
With no changes in aggregate demand or long-run aggregate supply, in long-run macroeconomic equilibrium, the price level will be ________ and real GDP will be ________. A) 120; $400 B) 110; $500 C) 90; $400 D) 100; $600
A tax that does not change consumers' behavior creates no
a. economic burden. b. excess burden. c. tax revenue. d. tax incidence.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point E to Point A, the opportunity cost of hybrid cars, measured in terms of motorcycles
A. increases. B. initially increases, then decreases. C. decreases. D. remains constant.
Agencies budgetary requests will be excessively large because _____
a. demand for government services is always increasing b. they want to make the President happy c. they know that their final budget will be smaller than their requests d. of logrolling