If the Fed buys bonds from a private bank, ________
A) the Fed's total liabilities will remain unaffected
B) the Fed's total assets will remain unaffected
C) the private bank's composition of assets will change
D) the private bank's total assets will increase
C
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Suppose that we observe that wages are falling while output is increasing. Holding the demand for output constant, what might cause this to happen?
What will be an ideal response?
The implementation lag for fiscal policy ________ it is for monetary policy
A) can be much longer than B) is generally much shorter than C) is usually the same as D) There is not an implementation lag for fiscal policy.
If the United States follows an expansionary monetary policy relative to Japan and Germany, which of the following is not likely to occur?
A) U.S. interest rates will rise relative to Japan and Germany B) a larger U.S. capital account deficit C) a depreciation of the dollar D) lower level of U.S. income
An example of a government program aimed at reducing poverty that is universal is:
A. Social Security. B. Medicare. C. public education. D. All of these are universal programs.