When the Fed wants US interest rates to increase, it will usually sell US t-bonds to banks
a. true
b. false
Ans: a. true
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Entry into a monopolistically competitive industry
A) is relatively easy. B) is very difficult. C) can be easy or difficult, depending on the type of product. D) is about the same as entering a monopoly industry.
Since 1983, the US has typically run a financial account surplus
a. True b. False
Explain the different sources of negative network externalities
According to the Solow model, given the levels of total efficiency units of labor and technology:
A) efficiency units of labor do not play any role in the determination of steady-state equilibrium level of GDP. B) there is a maximum fixed level of GDP that an economy can achieve by increasing savings. C) increases in the savings rate is the sole reason for sustained economic growth. D) increases in the rate of physical capital accumulation can be the sole reason for sustained economic growth.