Assuming that the Federal Reserve Banks sell $40 million in government securities to commercial banks and the reserve requirement is 20%, then the effect will be to reduce ________.
A. the money supply by potentially $200 million
B. excess reserves by $8 million
C. excess reserves by $200 million
D. the money supply by potentially $400 million
Answer: A
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The figure above illustrates that if this country wishes to have F2 - F1 additional food by moving from point A to point B, it will
A) have to find additional workers, because the country already is operating on its production possibilities frontier. B) be unable to do so until additional technological progress is made. C) have to sacrifice C1 - C2 clothing in order to free the resources necessary to produce the additional food. D) require that all the unemployed resources in the country be put to work.
Microeconomics can be used by governments to predict the impacts of a policy and suggest solutions to problems
What will be an ideal response?
The first union to organize workers across skills, industries, and regions was the
a. Knights of Labor b. Knights of Columbus c. American Federation of Labor d. Congress of Industrial Organizations e. Taft-Hartley
Suppose you read in the Wall Street Journal that actual investment in Mexico in 2003 was precisely the intended investment Mexican businesses had hoped to make. You would conclude that in 2003, the level of inventories in Mexico
a. had not changed but national income fell b. had not changed and national income was at its equilibrium level c. increased and national income fell d. increased along with national income e. was zero