If the FOMC decides that the Fed should buy bonds it
A. requires the permission of the Financial Oversight Committee.
B. requires the President's signature on the buy order.
C. instructs the New York Federal Reserve Bank's trading desk to buy them.
D. asks the Congress for permission to buy them.
Answer: C
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Although he is very poor, Al plays the million-dollar lottery every day because he is certain that one day he will win. Al makes this calculation based upon
A) the frequency of past outcomes. B) subjective probability. C) knowledge of all possible outcomes. D) tossing a coin.
Which of the following provides the bulk of revenue for the federal government?
a. corporate income taxes and grants from state and local governments b. personal income and payroll taxes c. user charges and funds borrowed from the general public d. corporate income and sales taxes
Suppose that the market for engagement rings is in equilibrium. Then political unrest in South Africa shuts down the diamond mines there. South Africa is the world's primary supplier of diamonds. What will happen?
A. The supply of engagement rings will increase. B. The equilibrium quantity of engagement rings will decrease. C. The demand for engagement rings will decrease. D. The equilibrium price of engagement rings will decrease.
Suppose all of the major computer manufacturers announced that beginning next month there would be major price reductions on their computers. This would cause the current demand for computers to:
A. increase. B. decrease. C. remain unchanged. D. increase and then decrease.