To target a rate that is higher than the current interest rate, the Fed can:
A. sell government securities to reduce reserves.
B. sell government securities to increase reserves.
C. purchase government securities to increase reserves.
D. purchase government securities to reduce reserves.
Answer: A
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Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country B would be using resources efficiently if they were producing:
A. (200 iPods, 1,750 tablets). B. (200 iPods, 1,500 tablets). C. (200 iPods, 1,000 tablets). D. (200 iPods, 750 tablets).
If a firm is losing money, this implies that
a. consumers do not understand the value of the product. b. the value of the resources used to make the product is being reduced. c. the firm must go out of business immediately. d. this product cannot be produced profitably in the long run.
In an open economy, gross domestic product equals $3,500 billion, consumption expenditure equals $2100 billion, government expenditure equals $400 billion, investment equals $800 billion, and net exports equals $200 billion. What is national savings?
a. $200 billion b. $600 billion c. $800 billion d. $1,000 billion
Barbara Ehrenreich wrote about jobs in the ______ labor market; Beth Schulman wrote about jobs in the ______ labor market.
A. secondary; secondary B. primary; primary C. secondary; primary D. primary; secondary