Refer to the given figure where the nominal interest rate equals 6 percent and the money supply equals 600.
If the Federal Reserve wants to set the nominal interest rate at 10 percent, it must conduct open market ________ to set the money supply at ________.
A. purchases; 800
B. purchases; 200
C. sales; 800
D. sales; 200
Answer: D
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Which of the following would cause an increase in the equilibrium wage?
A) The supply of labor increases and the demand for labor decreases. B) The supply of jobs increases less than the demand for jobs. C) The demand for labor increases faster than the supply of labor. D) The supply of labor increases more than the demand for labor.
What has been one of the results of globalization experienced by Eastern European nations after the fall of their socialist regimes?
a. All traces of their traditional culture have disappeared. b. These countries have attracted foreign investment from industrialized countries, which have transferred cleaner technologies and thus, improved environmental quality. c. These countries have not yet adapted to capitalism, and a majority support a new movement to return to communism. d. Most national forests have been destroyed by multinational companies. e. Many new diseases have been introduced because of increased contact with the West.
A monetary policy target is a variable that
A) the Fed cannot affect directly. B) the Fed has no ability to change. C) the Fed can affect directly. D) equals one of the Fed's main policy goals.
Other things equal, the demand for a good tends to be more inelastic, the
a. fewer the available substitutes. b. longer the time period considered. c. more the good is considered a luxury good. d. more narrowly defined is the market for the good.