Bank lending and deposits tend to change as interest rates change. Can the Fed counteract this tendency?
A. Yes, through its ability to affect the money supply.
B. Yes, through its ability to change tax levels.
C. No, the Fed is forbidden by the Constitution from intervening in the economy.
D. No, the Fed almost always follows a passive monetary policy.
Answer: A
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Refer to the information provided in Figure 6.4 below to answer the question(s) that follow.
Figure 6.4Refer to Figure 6.4. Bill's budget constraint is AC. If the bell peppers price increases, Bill's budget constraint will
A. swivel toward AD. B. swivel toward AB. C. remain at AC. D. The budget constraint is not depicted on the diagram.
The figure above shows the market for a good with an external benefit. When 6 units are produced, marginal social benefit equals ________ and marginal external benefit equals ________
A) $200; $150 B) $350; $200 C) $200; $50 D) $350; $150 E) $150; $250
When you buy previously issued shares of Twitter stock, this transaction takes place in the
A) primary market. B) bear market. C) bond market. D) secondary market.
Unplanned inventory decreases prompt firms to cut back on production until equilibrium output is restored
a. True b. False Indicate whether the statement is true or false