The Fed's purchase of government securities could
A) increase loans made by banks.
B) be an effective anti-inflationary policy.
C) decrease the price level and have no effect on real GDP.
D) decrease bank reserves.
A
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Assume that Figure 4-16 shows the supply of new houses. An improvement in the technology for building houses will shift supply from
A. S1to S2. B. S2to S1. C. S3to S2. D. S3to S1.
Is supply more elastic or less elastic as more time passes after a price change? Explain your answer
What will be an ideal response?
A leftward shift of the Japanese demand curve for foreign exchange will
a. increase the price of foreign exchange in Japan b. decrease the value of the yen c. make foreign goods more expensive in terms of yen d. make foreign goods less expensive in terms of yen e. make Japanese goods less expensive in terms of foreign exchange
The decline in the average number of hours worked over the last century from 60 hours to 40 hours can be explained as a consequence of
a. an increase in nonlabor income shifting labor supply to the left. b. an increase in nonlabor income shifting labor supply to the right. c. a decrease in the demand for labor. d. an improved understanding of the importance of sleep to labor productivity.