One of the Fed's functions is to be the government's banker. This function means that the
A) Fed holds bank reserves
B) Fed extends loans to the government whenever it spends more than it collects in tax revenues.
C) government's checking account is at the Fed.
D) all of the above
C
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A factory in a centrally planned economy produces 1,000 left shoes and no right shoes. No corresponding factory produces only right shoes. This outcome is an example of inefficiency in
a. output selection. b. production planning. c. product distribution. d. market segmentation.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Holding other factors constant, if food prices decline relative to the prices of other products, then the real wages of agricultural workers will ________ and employment of agricultural workers will ________.
A. increase; increase B. decrease; decrease C. increase; decrease D. decrease; not change
Owners of a corporation ________ through dividend payments on shares of that firm's stock
A) share in the profits of the firm B) retain earnings of the firm C) indirectly finance the firm D) issue bonds for the firm