Which of the following is a tool used by the Fed in the conduct of monetary policy?
A) changes in the prime rate
B) issuing new government bonds and retiring old ones
C) buying and selling corporate bonds
D) buying and selling federal government bonds
Ans: D) buying and selling federal government bonds
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If an activity results in a spillover benefit, then in a pure market economy the:
A. quantity produced is too low. B. quantity produced is too high. C. market supply is too high. D. market supply is too low.
A negative externality is a situation in which
A. a firm is paying in excess of the total costs of producing a good. B. a cost associated with an economic activity is borne by a third party. C. there is a spillover of benefits. D. None of these.
The United States is the most inequitable country in the developed world
Indicate whether the statement is true or false
Being "underwater" in one's home mortgage means that the market value of one's house had fallen below:
A. Its value the previous year B. What is owed in the mortgage loan C. The purchase price D. The average home price in the neighborhood