Explain how the Fed increases the money supply when it buys bonds in the open market
What will be an ideal response?
The Fed buys bonds in the open market and pays for the bonds by transmitting funds to the bond dealer's deposit account in a bank, at which point it becomes part of the money supply. The Fed has just created money, because it has added to the reserve account of the bond dealer's bank, and the money supply increases by the amount of the purchase.
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People usually migrate within their own country more readily than they emigrate abroad.
Answer the following statement true (T) or false (F)
Firms that are required to participate in affirmative action programs do end up hiring more minority employees
a. True b. False
What are some of the suggested remedies for the U.S. trade deficits? What remedies have been attempted? What remedies are left to try?
What will be an ideal response?
A monopolized market is characterized by:
a. a sole supplier, no close substitutes, and free entry. b. a sole supplier, no close substitutes, and barriers to entry. c. a sole supplier, many close substitutes, and barriers to entry. d. a sole supplier, a few close substitutes, and free entry.