Suppose that the Treasury decides to spend $12 billion on a given day
Because about $12 billion in new tax revenues are expected to replenish the Treasury's account at the Fed a week later, the best policy for the Fed to pursue if it wishes to stabilize reserves is to A) do a $12 billion government security repurchase agreement.
B) do a $12 billion government security reverse repurchase agreement.
C) buy $12 billion in government securities outright and hold them to prevent bank reserves from falling.
D) sell $12 billion in government securities to prevent bank reserves from rising.
B
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Which of the following is not an institutional constraint that limits the United States' production possibilities?
A. Blue laws that restrict bars and liquor stores from opening on Sunday B. Restrictions on child labor C. The fact that Americans dislike working at night or on the weekends D. Workers who are "in between" jobs
Which of the following is true concerning the growth record of less developed countries (LDCs) during the last several decades?
a. The per capita GDP of several poverty stricken African countries was lower in 2009 than in 1980. b. None of the LDCs have been able to match the per capita income growth rate of the United States. c. During the last two decades, the fastest growing countries in the world (those with annual real growth rates of 3.5 percent or more) have been LDCs. d. Both a and c are correct. e. All of the above are correct.
Refer to the accompanying figure.
Based on the figure, if autonomous spending falls from 400 to 200, then the new short-run equilibrium output will equal:
A. 800. B. 1,200. C. 400. D. 600.
One HEADLINE article in the text suggest that 30 percent of Americans trust the federal government to do the right thing. If government intervention makes the economy worse off, this is referred to as:
A) Government failure. B) Market failure. C) Central planning. D) Scarce resources.