Selling government bonds through open market operations allows the Federal Reserve to
A) decrease money in the Treasury.
B) receive a high rate of interest on the bonds.
C) decrease the money supply in the private sector.
D) receive discounts on future sales.
C
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When referring to "marginal" changes, the economic focus is on
A) changes which affect only a few people or products. B) large changes on the low end. C) small or incremental changes. D) graduated changes on the high end.
The federal budget was in deficit from 1931 to 1939, except in the year 1937
Given this fact, how do you explain E. Cary Brown's statement, "Fiscal policy, then, seems to have been an unsuccessful recovery device in the 'thirties-not because it did not work, but because it was not tried."
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and GDP Price Index in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period and net nonreserve-related international borrowing/lending remain the same. b. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). c. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. The quantity of real loanable funds per time period falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). e. The quantity of real loanable funds per time period rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive).
When the marginal utility per dollar of good A exceeds the marginal utility per dollar of good B,
A) the consumer should consume more of good A. B) the consumer is consuming too much of good A. C) good B must have a negative marginal utility. D) the consumer is in an optimal situation if the price of good A exceeds the price of good B.