A central bank has the most control over:
a. A nation's preferred asset ratios.
b. The monetary base.
c. The real exchange rate.
d. The velocity of money.
e. The M2 money supply.
.B
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Under monopsony, marginal factor cost
A) is downward sloping. B) is less than the wage rate, although it increases as more workers are hired. C) equals the wage rate. D) is greater than the going wage rate.
If assets are imperfect substitutes, then a decrease in the amount of domestic currency bonds held by the public will ________ the risk premium and ________ the amount of domestic currency bonds held by the central bank
A) decrease; leave unchanged B) increase; decrease C) increase; increase D) decrease; decrease E) leave unchanged; decrease
.An unanticipated shift to a more restrictive monetary policy by the Fed will result in which of the following?
What will be an ideal response?
Predictions of a dependent variable are subject to sampling variation.
Answer the following statement true (T) or false (F)