When a primary dealer buys a government bond from the Federal Reserve, reserves in the banking system ________ and the monetary base ________, everything else held constant
A) increase; increases
B) increase; decreases
C) decrease; increases
D) decrease; decreases
D
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The demand curve a monopoly faces is
A) horizontal. B) vertical. C) upward sloping. D) downward sloping.
In the long run people come to expect whatever inflation rate the Fed chooses to produce, so unemployment returns to its natural rate
a. True b. False Indicate whether the statement is true or false
The term “unemployed” includes all people who want a job, but don’t have one.
Answer the following statement true (T) or false (F)
If a firm's production function is Leontief and the price of capital goes down, the:
A. cost-minimizing combination of capital and labor does not change. B. firm must use less capital in order to minimize the cost of producing a given level of output. C. firm must use more capital in order to minimize the cost of producing a given level of output. D. firm must use less labor in order to minimize the cost of producing a given level of output.