If the Fed buys a T-bill from a commercial bank, how will it pay for the T-bill?
a. It will give the bank new reserves.
b. It will write the bank a check.
c. It will transfer cash to the bank's vault.
d. It will take reserves from another bank.
a
You might also like to view...
Why is there NO persistent unemployment in the classical model?
A) Unionization creates job security for workers. B) The wage level adjusts to eliminate unemployment. C) The interest rate adjusts to eliminate unemployment. D) The rate of economic growth is always high enough to allow those who want to work at current wages to find jobs.
Assuming fixed costs are positive, over a range of output in which average total costs were constant,
a. average variable costs would be constant as output increases. b. average variable costs would be falling as output increases. c. average variable costs would be rising as output increases. d. marginal cost would be less than average variable cost.
Allocative efficiency means which of the following?
a. Producing at the lowest cost b. Producing without waste c. Producing what consumers prefer d. Producing what sellers prefer
Which of the following is a building block of neoclassical economics?
a. the size of the economy is determined by real GDP b. sticky wages and prices c. menu costs d. wages and prices will adjust in a flexible manner