In the graph of the money market, the money supply curve is
a. vertical. It shifts rightward if the Fed buys bonds.
b. vertical. It shifts rightward if the Fed sells bonds.
c. upward sloping. It shifts rightward if the Fed buys bonds.
d. upward sloping. It shifts rightward if the Fed sells bonds.
a
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The value of a loan of $50,000 after a year at 2 percent interest is:
A. $1,000. B. $52,000. C. $49,000. D. None of these is true.
The aggregate supply curve is
a. vertical in the short run b. horizontal in the short run c. the sum of all of the supply curves of individual firms in the economy d. downward sloping in the short run e. upward sloping in the short run
Suppose the Environmental Protection Agency uses a corrective tax to set a price for pollution. Under this policy, is the supply curve for pollution rights vertical or is it horizontal?
If the country is heading into a recession, the Fed might be able to counteract this by
A. increasing the discount rate. B. carrying out an expansionary fiscal policy. C. forcing the government deficit to decrease. D. acting to increase the money supply.