Suppose the Fed increases the money supply in the current period with no other policy change implemented or anticipated. This policy action will cause which of the following shifts in the IS and/or LM curves in the current period?
A) IS left; LM up
B) IS right; LM up
C) no shift in IS; LM down
D) IS left; LM down
E) IS right; LM down
C
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The importance of the float is that it
A) exists at all. B) fluctuates considerably. C) decreases total reserves. D) is very stable.
In derivative markets, trade takes place in
A) assets such as bonds or common stock that derive their value from the value of the companies which issue them. B) assets whose rates of returns must be derived from information published in financial tables. C) assets that derive their value from underlying assets. D) assets which are not allowed to be traded on organized exchanges.
First-price auctions have all the following properties EXCEPT
a. Highest bid wins b. Highest bidder pays her winning bid c. The good is assigned to the second-highest bidder d. The price is set to the highest bid
Allowing free trade can lead to greater output because of the principle of: a. absolute advantage
b. rule of 70. c. comparative advantage. d. scarcity.