Bonds issued by the U.S. Treasury would:
A. not be held by the Fed.
B. be held by the Fed as part of its foreign exchange reserves.
C. be held by the Fed as part of its securities.
D. be held by the Fed as part of its loans.
Answer: C
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The demand curve in the figure above illustrates the demand for a product with a price elasticity of demand
A) equal to zero at all prices. B) equal to infinite at all prices. C) equal to one at all prices. D) that is different at all prices.
The supply of domestic assets ________
A) is insensitive to changes in the nominal exchange rate B) rises when the nominal exchange rate rises C) falls when the nominal exchange rate rises D) equals the value of exports minus the value of imports
The intersection of the aggregate supply curve and the aggregate demand curve occurs at the economy's equilibrium level of
A) real investment and interest rate B) real disposable income and unemployment C) real national output and the price level D) government expenditures and taxes E) imports and exports
Marginal costs reflect changes in variable costs.
Answer the following statement true (T) or false (F)