For this question, assume that the Fed sets monetary policy according to the Taylor rule. Suppose current U.S. macroeconomic conditions are represented by the following: ? < ??* and u = un. Given this information, we would expect that the Fed will
A) implement a monetary contraction.
B) implement a monetary expansion.
C) maintain its current stance of monetary policy.
D) more information is need to answer this question.
B
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Capital expenditures:
a. are easily reversible b. are forms of operating expenditures c. Affect long-run future profitability d. Involve only money, not machinery e. none of the above
The Case of the Missing Trade refers to
A) the fact that factor trade is less than predicted by the Heckscher-Ohlin theory. B) the 9th volume of the Hardy Boys' Mystery series. C) the fact that world exports does not equal world imports. D) the fact that the Heckscher Ohlin theory predicts much less volume of trade than actually exists. E) the fact that the Heckscher Ohlin theory never applies to China-U.S. trade practices.
Suppose Paul Allen deposits $1 million cash into his checking account at Bank of America. If the required reserve ratio is 20%, what is the maximum amount of required reserves that this deposit will generate in the banking system?
A) $1 million B) $4 million C) $5 million D) $25 million
Total surplus in a market will increase when the government
a. imposes a tax on that market. b. imposes a binding price floor on that market. c. removes a binding price ceiling from that market. d. None of the above is correct.