As a "central bank," which of the following is TRUE regarding the Fed?
I. The Fed is a public authority that regulates the nation's banks.
II. The Fed is not allowed to provide services to commercial banks like Citibank.
III. The Fed is required to provide banking services to private citizens.
A) I
B) II
C) I and II
D) I and III
A
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Tax expenditures can be viewed as government spending through the tax code
a. True b. False
. An employer asking for a list of references from a potential employee is an example of:
A. signaling. B. screening. C. statistical discrimination. D. building a reputation.
Identify the correct statement about the effect of an expansionary monetary policy in an economy
a. It results in an increase in real gross domestic product in the short run and inflation in the long run. b. It results in a decrease in real gross domestic product in the short run and inflation in the long run. c. It results in an increase in real gross domestic product in the short run and deflation in the long run. d. It results in a decrease in real gross domestic product in the short run and deflation in the long run.
Which of the following is an example of a compensating differential?
A. A plastic surgeon must train for five more years than an internist and on average plastic surgeons earn 40% more per year than internists. B. It takes the same amount and type of training to be either a prison guard or a parole officer. Prison guards earn about 15% more than parole officers with the same amount of experience. About 3% of prison guards, but only 1% of parole officers, are injured on the job each year. C. A bank hires both men and women who have just graduated from college. The women are assigned positions as bank tellers, and the men are assigned to the management training program. D. Bill was injured on the job and as a result of his injuries he can no longer work. He now qualifies for $1,000 a month in disability payments.