The purchase and sale of government bonds by the Fed for the purpose of altering bank reserves is referred to as:
A. Open-market operations.
B. Closed-market operations.
C. Discounting.
D. Expansionary fiscal policy.
A. Open-market operations.
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One feature of the volunteer's dilemma is that as the group gets larger, individuals in the group are less likely to volunteer
Indicate whether the statement is true or false
Given the input-output relationships in the table below:
Countries A B Goods X 8 4 Y 4 1 (a) Which country has absolute advantage in which good and why? (b) Which country has comparative advantage in which good and why? (c) If A is endowed with 8000 hours of labor, how much X will it produce after trade begins? How much Y? Explain. (d) What is the allowable range on A's wages relative to B's if trade is flowing between these two countries according to comparative advantage?
The conventional view among economists is that persistent budget deficits lead to ________ real interest rates and ________ private investment
A) higher; crowd in B) higher; crowd out C) lower; crowd in D) lower; crowd out
Reparations for slavery in the United States would
A) be consistent with the Pareto principle. B) be inconsistent with the Pareto principle. C) have nothing to do with the Pareto principle. D) be unconstitutional.