Which of the following is NOT true about the duties the Fed performs for the federal government?
A) The U.S. Treasury has a checking account at the Fed.
B) The Federal Reserve aids in the purchase and sale of certain government securities.
C) The U.S. Treasury controls the Fed.
D) The Federal Reserve is the banker and fiscal agent of the federal government.
C
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In the Classical model, high unemployment ________.
A. occurred when the equilibrium GDP was too low B. could last for a long period of time C. would cause wages to fall D. required government intervention to reduce it
Normative economics
A) predicts the consequences of alternative actions. B) answers the question "What ought to be?" C) answers the question "What is?" D) is the focus of most modern economic reasoning.
Assume equilibrium real GDP per year is equal to full-employment real GDP. Which of the following will cause a recessionary gap?
A) a discovery of a new raw material B) a reduction in aggregate demand C) a temporary reduction in the price of oil D) an increase in aggregate demand
The law of diminishing marginal utility implies it is possible that the marginal utility of my tenth pistachio nut is less than the marginal utility of my third pistachio nut, other things constant
a. True b. False