The money supply contracts when the Fed:
a. replaces worn and ripped Federal Reserve notes.
b. sells government securities
c. borrows from the U.S. Treasury.
d. purchases equities in major U.S. corporations.
b
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The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as
A) human capital. B) labor productivity. C) technology. D) real GDP.
An important difference between tariffs and quotas is that tariffs
A) raise the price of the good. B) generate tax revenue for the government. C) stimulate international trade. D) help domestic producers. E) are paid by foreign producers.
The policy lever most commonly used by the Fed is:
A. Changes in the discount rate. B. Buying and selling bonds. C. Changes in the reserve requirement. D. Foreign-exchange operations.
If there is an increase in interest rates then we can expect investment spending to _____ and consumption spending to _______.
Fill in the blank(s) with the appropriate word(s)