When the economy strengthens, following the period of quantitative easing, the Federal Reserve plans to keep a lid on money growth by
A) increasing reserve requirements.
B) selling dollars in foreign-exchange markets.
C) increasing the interest rate paid on reserves.
D) buying dollars in foreign-exchange markets.
C
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As a unit of account, money is used
A) to hold purchasing power over time. B) to define prices of all other goods. C) to pay off future debts. D) to exchange for goods and services.
A risk premium is additional interest, in excess of the market rate, that a bondholder receives in order to compensate him for
a. systematic risk. b. inflation. c. default risk. d. the bond discount.
Marginal revenue is not equal to price for a monopolist because:
A. total revenue increases as output increases. B. the monopolist must lower the price of all units in order to sell more. C. the monopolist's demand curve is below its marginal revenue curve. D. the monopolist sets price equal to marginal cost.
Consumer goods:
A.) Account for over two-thirds of total U.S. output. B.) Include nondurable goods but not durable goods. C.) Account for a smaller portion of GDP than government services. D.) Include durable and nondurable goods but not services.