The four distinct tools of policy used by the Fed to influence the money supply are
A) interest rates, government spending, tax rates, and government transfer payments.
B) open market operations, discount policy, reserve requirement policy, and adjusting interest on reserves.
C) open market operations, adjusting the exchange rate of the dollar, government purchases, and reserve requirement policy.
D) reserve requirement policy, discount policy, interest rates, and tax rates.
B
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If labor and capital are substitutes in production, then an increase in the amount of capital will
a. reduce the total product associated with each quantity of labor. b. decrease the marginal product of labor. c. increase the marginal product of labor. d. have no effect on labor productivity.
In the financial futures quotations, the total number of long positions outstanding is called
A) settlements. B) market activity. C) open interest. D) arbitrage.
Which of the following impacts of a Gulf hurricane would not show up as a direct loss to GDP?
a. The reduction in crude oil production b. The reduction in oil refining c. The loss of oil production facilities d. The loss of restaurant business in coastal communities e. The reduction in agricultural production
Inflation means that:
A. all prices are rising, but at different rates. B. all prices are rising and at the same rate. C. prices on average are rising, although some particular prices may be falling. D. real incomes are rising.