The Federal Reserve may choose to monetize the debt in order to
a. reduce the burden of the national debt.
b. shift the supply curve of money outward.
c. shift the demand curve for money inward.
d. reduce the volume of reserves in commercial banks.
b
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________ in the foreign interest rate causes the demand for domestic assets to increase and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
The statement, "If a deal is too good to be true, then it probably is not true," is most closely related to which core economic principle?
A. The Cost-Benefit Principle B. The No-Cash-on-the-Table Principle C. The Scarcity Principle D. The Low-Hanging Fruit principle
Refer to the data. If this demand schedule were graphed, we would find that:
Answer the question on the basis of the following demand schedule:
A. its slope diminishes as we move southeast down the curve.
B. its slope diminishes as we move northwest up the curve.
C. its slope is constant throughout.
D. the data are inconsistent with the law of demand.
Geographic immobility in the labor force results in:
A. Homogeneous wage rates B. Homogeneous unemployment rates C. Local labor markets which reach equilibrium quickly and efficiently D. Persistent wage and unemployment differentials in different regions of the country