The Fed is concerned that inflation might occur. To help eliminate this possibility, the Fed could ________ government securities to ________ the federal funds rate in the short run
A) buy; raise
B) sell; not change
C) sell; lower
D) buy; lower
E) sell; raise
E
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When the government makes a firm the exclusive legal provider of a good or service, it grants the firm
A) a network externality. B) a copyright. C) a quota. D) a public franchise.
Suppose the U.S. dollar price of the Japanese yen decreases. Given this information, which of the following is correct?
A) The dollar has appreciated. B) The dollar has depreciated. C) The yen has appreciated. D) The yen price of the dollar decreased.
Long-run equilibrium in the goods and services market requires that decision makers who agreed to long-term contracts must have
a. incorrectly anticipated the level of prices when they made the agreements. b. correctly anticipated the level of prices when they made the agreements. c. correctly anticipated the natural rate of unemployment when they made the agreements. d. correctly anticipated actual GDP when they made the agreements.
Which of the following institutions is a central bank?
a. the Bank of Japan b. the Bank of England c. the Federal Reserve System d. All of the above are correct.