If the Fed fears an economic downturn, it would be most likely to
a. buy additional bonds in order to reduce the federal funds rate.
b. buy additional bonds in order to increase the federal funds rate.
c. sell additional bonds in order to increase the federal funds rate.
d. sell additional bonds in order to reduce the federal funds rate.
A
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Recall the Application. As the world price of wool decreased, the quantity of wool supplied by individual ranchers would ________, and the quantity supplied in the whole market would ________
A) decrease; increase B) increase; decrease C) increase; increase D) decrease; decrease
Between 1860 and 1910, value added by the top ten manufactures roughly
a. doubled. b. tripled. c. increased by 500% (a factor of five). d. increased by 1000% (a factor of ten).
A perfectly competitive firm hires more resources than a monopolist
a. True b. False Indicate whether the statement is true or false
Arrow's impossibility theorem is not relevant to modern analysis of political economy.
A. True B. False C. Uncertain