If the Fed sells government bonds on the open market, which of the following will NOT occur?
A. The money supply will contract.
B. The market rate of interest on corporate bonds will increase.
C. The market rate of interest on government bonds will increase.
D. The interest rate will fall.
D. The interest rate will fall.
You might also like to view...
The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. How much producer surplus is lost?
A) $10,000 B) $20,000 C) $25,000 D) $40,000
Which of the following games provides the best way to model price wars?
A) a repeated duopoly game B) a game of chicken C) a sequential entry game in a noncontestable market D) a sequential entry game in a contestable market
A monopoly faces an inverse demand curve of P = 100 - 2Q. The marginal cost curve is MC = .5Q. What government price ceiling would represent optimal price regulation?
What will be an ideal response?
Government involvement has become so prevalent in the U.S. economy that the U.S. economy is now generally considered to be a socialist economy
a. True b. False Indicate whether the statement is true or false