In the money market, in the short run in order to decrease the nominal interest rate, the Fed must
A) increase the discount rate.
B) increase the quantity of money.
C) decrease the quantity of money.
D) decrease the demand for money.
E) directly lower the interest rate and not change either the demand for money or the supply of money.
B
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If an employee receives health insurance through his or her employer, the employer
A) still withholds contributions for Medicare and Medicaid from the employee's paycheck. B) still withholds contributions for Medicaid, but not Medicare, from the employee's paycheck. C) still withholds contributions for Medicare, but not Medicaid, from the employee's paycheck. D) is no longer required to withhold contributions for Medicare or Medicaid from the employee's paycheck.
Despite an expansionary monetary policy, an economy experiences a recession. Everything else held constant, the recession could occur in spite of the rightward shift of the LM curve if
A) consumer confidence decreases sharply. B) there is an investment boom. C) the money supply increases. D) taxes are cut.
The Lerner Index is derived from the profit-maximizing condition of a firm
Indicate whether the statement is true or false
Which of the following statements best completes the following: "The Fed's independence can only be revoked by…"?
A. Congress B. Changing the U.S. Constitution C. The Secretary of the Treasury D. The U.S. President