If the Federal Reserve increases the money supply, then initially there is a
a. shortage in the money market, so people will want to sell bonds.
b. shortage in the money market, so people will want to buy bonds.
c. surplus in the money market, so people will want to sell bonds.
d. surplus in the money market, so people will want to buy bonds.
d
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Why has the value of ivory threatened the extinction of the elephant, whereas the value of beef has enhanced the survival of the cow?
a. Cows are a common resource, whereas elephants are owned by governments. b. Elephants are larger than cows, requiring more economic resources. c. Elephants live in Africa, where economic resources are scarce. d. Elephants are a common resource, whereas cows are privately owned.
The Federal Reserve is responsible for issuing currency.
Answer the following statement true (T) or false (F)
Suppose the production of mp3 players can be represented by the following production function: q = L0.4K0.4. Which of the following statements is (are) TRUE?
A) The production function has decreasing returns to scale. B) The marginal productivity of labor falls as labor increases in the short run. C) Capital and labor can be substituted for one another. D) All of the above.
The case of Airbus, an airplane manufacturing consortium in Europe, which receives large subsidies from several European countries, best exemplifies which rationale for protectionist policies?
A) helping domestic firms establish monopolies in world markets B) shielding workers from foreign competition C) protecting infant industries D) prevention of dumping in local markets