If the Fed purchases federal government bonds on the open market, bank reserves will
A) decrease leading to a decrease in the money supply.
B) increase leading to a decrease in the money supply.
C) increase leading to an increase in the money supply.
D) decrease leading to an increase in the money supply.
Ans: C) increase leading to an increase in the money supply.
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The term "stagflation" is used to define an economic situation where there are adverse supply shocks which cause a fall in output but with increasing price level
Indicate whether the statement is true or false
Who among the following individuals is not an underemployed or a discouraged worker?
a. A person employed part-time but willing to work full-time b. A homeless person who has not found work for a year and has given up looking for jobs c. A nuclear physicist unable to work because of illness d. A gourmet French chef working part-time at Burger King e. A 60-year-old professor who has stopped looking for a teaching job because schools consider him too old
The demand faced by firms within which of the following industries is most nearly horizontal?
a. steel b. computer operating systems c. vegetables d. automobiles e. books
Corrective taxes differ from most taxes in that corrective taxes
a. reduce economic efficiency. b. do not raise revenue for the government. c. do not cause deadweight losses. d. always result in a high burden on sellers of goods to which the corrective tax applies.