What is the most-used instrument for controlling week-to-week changes in the money supply?
(A) The required reserve ratio
(B) The money multiplier
(C) The discount rate
(D) Open market operations
Ans: (D) Open market operations
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The workers' perceived real wage rate is:
a. their nominal wage rate divided by the actual price level. b. their nominal wage rate divided by the expected price level. c. the actual price level divided by their nominal wage rate. d. the expected price level divided by their nominal wage rate.
Sheena lost her job as a sales manager when she quit to move to Texas. She is currently submitting applications and doing job interviews. What type of unemployment is this?
a. structural b. cyclical c. she is not unemployed d. frictional
The economy is experiencing high unemployment and a low rate of economic growth and the Fed decides to pursue an expansionary money policy. Which action by the Fed would be most consistent with this policy?
a. Raising the discount rate b. Raising the reserve ratio c. Selling government securities d. Buying government securities
In considering pounds and dollars we can say that when the dollar rate of exchange for the pound rises
A. the pound rate of exchange for the dollar will fall. B. the pound rate of exchange for the dollar will also rise. C. the pound rate of exchange for the dollar may either fall or rise. D. American net exports to Britain will tend to fall.