If the Federal Reserve wished to decrease interest rates using open market operations, it would
A. buy gold.
B. buy U.S. government securities.
C. buy corporate stocks.
D. sell U.S. government securities.
Answer: B
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The United States can produce 1,000 shoes if it specializes in shoe production. Alternatively, it can produce 500 shirts. Taiwan can produce 500 shoes or 200 shirts. Explain which country will specialize in shoe production and which in shirt production. What are the possible terms of trade?
What will be an ideal response?
Which of the following shifts the supply curve for gasoline rightward?
A) a situation in which the quantity demanded exceeds the quantity supplied B) an increase in the price of gasoline C) a decrease in the price of a resource used to produce gasoline, such as crude oil D) an increase in the demand for gas-guzzling, sport utility vehicles
Which of the following is the best example of "how goods and services should be produced?"
A) complying with the technical specifications in the production of an aircraft B) the production of jet aircraft for the air force or for a commercial airline C) the use of additional workers versus the use of machines in the production of goods D) the production of a new manufacturing facility
Government price controls a. strip market prices of their ability to signal relative scarcities to both buyers and sellers. b. often impose harm on at least some of the group of people they are trying to assist. c. sometimes force prices above or below what they would be in a market economy
d. all of the above