Just prior to the year 2000, the Fed was concerned that people would make larger than normal bank withdrawals out of fear of what was called the "Y2K computer bug." Fearing that this would disrupt the banking system, the Fed wanted to use a defensive action to prevent any such disruption. This would take the form of open market bond:
A. sales that would prevent the federal funds rate from increasing.
B. purchases that would prevent the federal funds rate from decreasing.
C. purchases that would prevent the federal funds rate from increasing.
D. sales that would prevent the federal funds rate from decreasing.
Answer: C
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Pointy Stone State Park is the sole employer of naturalists in the area. The table above provides information about the supply of naturalists and the value of marginal product of labor for naturalists
On the last naturalist hired, Pointy Stone State Park will earn a profit of A) zero. B) $100 per week. C) $150 per week. D) $200 per week.
In the graph showing the data for the short-run and long-run Phillips curve from 1961–1973, movement along the short-run Phillips curve is represented by the move from ______.
a. Point A to Point B
b. Point A to Point C
c. Point B to Point C
d. Point C to Point A
In 1991, El Salvador ended a fifteen-year civil war, and the new government in place introduced a number of liberalization policies that included privatization, exchange rate liberalization, tariff reductions, tax exemptions to foreign direct investment, and a more market-oriented economy. These economic reforms are examples of:
A. a fiscal and monetary policy change. B. both a policy change and a regime change. C. a policy change. D. a regime change.
Mrs. Arnold is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is 60 utils and the marginal utility of the last bag is 30 utils. The prices of soda and pretzels are
$.60 per bottle and $.40 per bag respectively. It can be concluded that: A. the two commodities are substitute goods. B. Mrs. Arnold should spend more on pretzels and less on soda. C. Mrs. Arnold should spend more on soda and less on pretzels. D. Mrs. Arnold is buying soda and pretzels in the utility-maximizing amounts.