The Fed engages in open market operations and sells government securities. The result is
A. lower interest rates.
B. higher interest rates.
C. interest rates remain unchanged since there is no reason to think bond prices changed.
D. uncertain since more information is needed.
Answer: B
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An example of a barrier to entry is
A) superior technological knowledge. B) high profits. C) product differentiation. D) increasing marginal costs.
Refer to Figure 24-1. Ceteris paribus, an increase in households' expectations of their future income would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Politicians often highlight the plight of a single individual as a reason to support a particular project or agenda. In this case, politicians are using
A) the Khaneman effect. B) the Allais effect. C) framing. D) prospect theory.
The system that measures the economy's overall performance is formally known as:
a) National income accounting b) Business cycle measurement c) GDP assessment d) Final output and income statistics