The Fed engages in open market operations and sells government securities. The result is
A) lower interest rates.
B) higher interest rates.
C) interest rates remain unchanged since there is no reason to think bond prices changed.
D) uncertain since more information is needed.
B
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The term "currency drain" refers to an increase in currency held outside banks
Indicate whether the statement is true or false
Which one of the following statements is the most correct?
A) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated increase in the home central bank's foreign asset implies an increased home money supply. B) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated increase in the home central bank's foreign asset implies a decreased home money supply. C) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated increase in the home central bank's foreign asset implies an increased home money demand. D) If central banks are not sterilizing and the home country has a balance of payments surplus, any associated decrease in the home central bank's foreign asset implies an increased home money supply. E) If central banks are not sterilizing and the home country has a balance of payments shortage, any associated decrease in the home central bank's foreign asset implies an increased home money supply.
Computing capacity has approximately:
A. doubled every two years since the invention of computers. B. tripled every two years since the invention of computers. C. doubled every five years since the invention of computers. D. tripled every three years since the invention of computers.
The George Stigler quote, "...the degree of ‘market failure' for the American economy is much smaller than the ‘political failure' arising from the imperfections of economic policies ...". illustrates the advantage of which type of public policy toward monopolies?
a. antitrust laws b. regulation c. public ownership d. "do nothing"