Expansionary open market operations (OMO) by a nations's Central Bank (CB) refers to:
A) The purchase of government bonds (Treasury securities) by a nation's CB in a primary market transaction.
B) The purchase of government bonds (Treasury securities) by a nation's CB in a secondary market transaction.
C) The selling of government bonds (Treasury securities) by a nation's CB in a primary market transaction.
D) The selling of government bonds (Treasury securities) by a nation's CB in a secondary market transaction.
1. B and D Conly
2. B only
3. D only
4. C only
Answer: 2. B only
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Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Acme and Mega decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Mega cheats on the agreement by reducing its price to $1 while Acme continues to comply with the collusive agreement, then Mega's economic profit will be ________.
A. $150 B. $200 C. $75 D. $100
The tax multiplier is the
A) magnification effect of a change in taxes on aggregate supply. B) magnification effect of a change in taxes on the national debt. C) magnification effect of a change in taxes on the budget deficit. D) magnification effect of a change in taxes on government expenditures. E) magnification effect of a change in taxes on aggregate demand.
In the early 1800s, many state legislatures began to pass general incorporation laws, which
A) made it harder for firms to organize as corporations. B) allowed sole proprietorships and partnerships to issue stock. C) allowed firms to more easily be organized as corporations. D) granted sole proprietorships and partnerships limited personal liability.
A foreign bank receives a deposit of $10,000 from a U.S. citizen. As a result, there is a net capital outflow from the U.S., if ________
A) the bank buys a U.S.-made computer B) the bank buys a bond issued by a U.S. company C) the bank keeps the $10,000 in a vault D) all of the above E) none of the above