Which of the following is the tool used most frequently by the Fed?
A. The reserve requirement.
B. The fed funds rate.
C. The discount rate.
D. Open market operations.
Answer: D
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Because new plastic and recycled plastic are substitutes, as the price of newly produced plastic decreases
A) the demand curve for recycled plastic shifts to the left. B) there is a movement up along the demand curve for recycled plastic. C) there is a movement down along the demand curve for recycled plastic. D) the demand curve for recycled plastic shifts to the right.
Which of the following is most likely to increase productivity growth, as measured using GDP statistics?
a. Reduced capital formation b. Decreased human capital c. Increased research and development d. Increased government regulation e. Higher price of a raw material
According to Ricardian equivalence advocates, if the government announces a plan to balance the budget by reducing its deficits to zero, then the private sector will:
A. decrease consumption. B. decrease investment. C. increase savings. D. decrease savings.
A country, such as Argentina in 2002, that is buying its own currency to maintain a given exchange rate
A. has a balance of payments surplus. B. has an undervalued currency. C. has an overvalued currency. D. need not fear a “run” on its currency.