Open market operations are conducted by the Fed
A. in the New York Stock Exchange.
B. through the Bureau of Engraving.
C. through the Washington location of the Federal Reserve's Bank of Governors.
D. in the private secondary U.S. securities market.
Answer: D
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Which of the following is likely to happen if a contractionary monetary policy is adopted?
A) Real wages will fall. B) The aggregate price level will increase. C) Equilibrium unemployment will fall. D) The real interest rate will increase.
Which of the following is an effect of a minimum wage law that establishes a wage floor above the current market clearing? wage?
A) surplus labor, or unemployment
B) a decrease in the market clearing wage
C) a decrease in the quantity of labor supplied
D) an increase in the quantity of labor supplied
Foreign aid:
A. provided by developed countries to developing countries represents about 10 percent of the GDP of developed countries. B. is an important source of funding for investment in most developing countries. C. does not contribute much to domestic investment in most developing countries. D. is largely wasted in most developing countries because it comes with no strings attached.
What method is used as the standard way to measure the effect of debt in an economy?
What will be an ideal response?