When the Fed buys United States bonds,
A. excess reserves in commercial banks are increased immediately.
B. the banking system will decrease the number of loans that are made.
C. total bank reserves are decreased.
D. the value of the money multiplier slowly declines to a new stationary level.
A. excess reserves in commercial banks are increased immediately.
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According to chapter 1 in your textbook, while economic theory offers a biased perspective on social phenomena,
A) it deserves our confidence, but only when it is confined to the monetary or financial sector of society. B) it is useless to anyone who rejects the free market system. C) it is nonetheless worth learning. D) it is superior to all the other social sciences.
The determination of which goods are public goods depends on: a. public laws
b. normative considerations. c. whether it is produced directly by the government or produced by a private sector firm. d. whether it is possible to exclude additional users from consuming the good if they do not pay for it.
What do economists mean by the term "sticky wage"?
A. It refers to the reluctance by employers to increase nominal wages during an inflationary period. B. It refers to a wage that is slow to adjust to its equilibrium level, creating sustained periods of shortage or surplus in the labor market. C. It refers to a breakdown in wage negotiations between employers and employee unions. D. It refers to a union negotiated wage.
Medicare is an example of a third-party payment for medical services that
A) causes providers to supply less of medical services than they would without the payment. B) causes buyers to consume more of medical services than they would without the payment. C) does not cause any change in the equilibrium position for medical services which existed without the subsidy. D) causes the price of medical services to rise for the consumer once the payment is provided.