In Table 13-1, the Federal Reserve System has
a. sold $10 million in government securities to banks, taking payment in cash.
b. sold $10 million in government securities to banks, taking payment from the bank's reserves.
c. purchased $10 million in government securities from banks, paying for them with increases in banks' reserves.
d. purchased $10 million in government securities from banks, paying for them with new Federal Reserve notes.
c
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Assuming a long-run aggregate supply curve, an increase in the money supply results in ________ in output and ________ in price level
A) an increase; no change B) a decrease; no change C) a decrease; a decrease D) no change; an increase
An aggregate production function shows the relationship between
A) real GDP and leisure. B) real GDP and the quantity of labor employed. C) leisure and unemployment. D) real GDP and unemployment.
The opportunity cost of capital owned by the firm should reflect
A. the return foregone by using the capital rather than renting it to another firm. B. acquisition cost. C. wage rate differences. D. both a and b
Which recent president raised taxes when the income tax share of GDP was very low?
A. George W. Bush B. Ronald Reagan C. Barack Obama D. Bill Clinton