If the Federal Reserve purchases newly issued government debt
A) the effect is as if the Treasury had printed money to cover the deficit.
B) the effect is the same as borrowing from the public.
C) the money supply decreases.
D) existing money is destroyed.
A
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Economies of scale exist when:
A. the average cost of production falls as output rises. B. firms become larger. C. doubling all the inputs leads to less than double the output. D. input prices are falling.
Over the past 50 years, the U.S. labor force participation rate has decreased for
i. men. ii. women. iii. the over-all labor force. A) ii and iii B) i, ii, and iii C) i and iii D) ii only E) i only
There are a number of benefits that usually accompany economic growth. The following are such benefits EXCEPT
A) increase in literacy. B) increased expected life-spans. C) political stability. D) urban congestion.
In a binding situation,the Fed has no way to raise or lower the interest rate.
Answer the following statement true (T) or false (F)