If the money supply in the economy were at MS2, to engage in contractionary policy the Federal Reserve Bank would use open market operation to move money supply to:
A. MS4
B. it would stay at MS2
C. MS3
D. MS1
Answer: D
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The planned investment function will shift downward if
A) real disposable income increases. B) the interest rate falls. C) business expectations become more pessimistic. D) the existing stock of capital decreases.
Katy is holding an English auction. If she estimates the values of her bidders to be $2, $4, $10, $15 and $25, she should expect to be able to make ____ off the auction
a. Just above $10 b. Just below $10 c. Just above $15 d. Just below $15
Which of the following correctly matches the income payment with the resource?
a. rent–land; wages–labor; interest–capital; profits–entrepreneurship b. profits–land; wages–labor; rent–capital; interest–entrepreneurship c. taxes–land; interest–labor; rent–capital; profits–entrepreneurship d. interest–land; taxes–labor; interest–capital; rent–entrepreneurship e. rent–capital; profits–labor; wages–land; interest–entrepreneurship
Consider a two-goods (capital and consumption) production possibilities curve for the year 2004 . Which of the following pairs are assumed fixed in this scenario?
a. unemployment and capital goods production in the year 2004 b. number of resources and consumption goods production in the year 2004 c. composition of the economy's output and number of resources in the year 2004 d. capital and consumption goods production in the year 2004 e. technology and number of resources in the year 2004