Which tool results in an immediate and major impact on the money supply, but is rarely used by the Fed because it affects the money supply in such a significant way?
a. open market operations
b. reserve requirement alterations
c. reserve interest rate changes
d. discount rate changes
b. reserve requirement alterations
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Which of the following problems are created by an information asymmetry
a. Moral hazard b. Adverse selection c. Both of the above d. None of the above
Discuss the pros and cons of oligopoly from the perspective of U.S. society.
What will be an ideal response?
Which of the following is an accurate statement about the underground economy?
a. It is given a penalty tax in addition to a standard tax. b. It can account for more than one-third of the GDP in developing countries. c. It often includes everyday activities, such as housework and gardening. d. It is reported to the U.S. government through official channels.
In a purely competitive industry, each firm:
A. produces a differentiated product. B. can easily enter or exit the industry. C. engages in forms of nonprice competition. D. is a price maker.