When the Federal Reserve decreases the money supply, it generally does so by purchasing bonds.
Answer the following statement true (T) or false (F)
False
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In the United States, a reason for the increase of the labor force participation rate for women is that
A) an increase in wealth allowed men to retire early. B) more women pursued a college education and received higher wages upon graduation. C) fewer women married. D) there has been a decrease in jobs with flexible hours. E) improved Social Security benefits are available for women if they work.
The percentage of money income earned by the lowest fifth of families in the U.S. was ________ in 1960 and ________ in 2010
A) 41.3%; 47.8% B) 15.9%; 20.0% C) 12.2%; 9.5% D) 4.8%; 3.8%
When economists refer to the economy’s self-correcting mechanism, they are referring to the fact that the
A. economy will react automatically to a recessionary gap through inflation. B. economy will react automatically to an inflationary gap through deflation. C. economy will react automatically to an inflationary gap through inflation. D. simple multiplier is greater than the complex multiplier.
In 1933, net private domestic investment was a minus $6.0 billion. This means that:
A. gross private domestic investment exceeded depreciation by $6.0 billion. B. the economy was expanding in that year. C. the production of 1933's GDP used up more capital goods than were produced in that year. D. the economy produced no capital goods at all in 1933.