Refer to the figure below. If the Federal Reserve wants to set the nominal interest rate at 9%, it must conduct open market ________ to set the money supply at ________. 
A. sales; 100
B. purchases; 900
C. purchases; 100
D. sales; 900
Answer: A
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A barter system of payment is
A) different from a money system of payment because money does not require a double coincidence of wants. B) similar to a money system of payment because both require a double coincidence of wants. C) different from a money system of payment because the barter system is a better unit of account. D) similar to a money system of payment because both use one asset as a unit of account. E) similar to a money system of payment because both are used as stores of value and units of account.
Which of the following statements about the FDIC is untrue?
a. The FDIC conducts bank audits and examinations. b. The FDIC helps prevent bank failures. c. The FDIC is owned by member banks. d. The FDIC provides demand deposit insurance for participating banks. e. The FDIC was created in 1933.
The economy’s self-correcting mechanism
A. tends to push unemployment toward a specific point called the natural rate of unemployment. B. works better at correcting inflationary gaps than recessionary gaps. C. cannot work if the Phillips curve is vertical. D. ensures that the economy will not have to endure a long period of high unemployment.
Which of the following statements is true?
A. The long-run potential of the economy declines as output per worker falls during a recession. B. The long-run potential of the economy increases as output per worker rises during an expansion, but the long-run potential of the economy doesn't change as output per worker falls during a recession. C. The long-run potential of the economy increases as output per worker rises during an expansion. D. Changes in output per worker over the business cycle have nothing to do with the long-run potential of the economy.