To increase the money supply, the Fed might:
a. increase the reserve requirement and the discount rate
b. decrease the reserve requirement and the discount rate.
c. increase the reserve requirement and decrease the discount rate.
d. sell government securities and increase the discount rate.
e. sell bonds on the open market and increase the reserve requirement.
b
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Tariffs create deadweight losses and destroy wealth, whereas quotas increase cooperative surplus and create wealth
Indicate whether the statement is true or false
Which of the following best explains the negative slope of the short-run Phillips curve?
A) Short-run aggregate supply increases at the same pace as aggregate demand increases so that inflation and unemployment do not change. B) Weak growth in aggregate demand keeps the economy below potential GDP, so unemployment rises but inflation falls. C) Aggregate demand grows so quickly that the inflation rate rises as unemployment rises. D) Long-run aggregate supply increases quickly enough that inflation falls as unemployment also falls.
Workers compete against workers who have:
A. totally different human capital. B. similar human capital. C. the exact same type of human capital. D. all levels of human capital.
A variable measures:
A. something that always has the same value. B. something that can take on different values. C. factors that occur with high degrees of uncertainty. D. the degree to which something varies over time.