Open market purchase of government securities by the Fed increases the federal funds rate
Indicate whether the statement is true or false
FALSE
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Suppose that a long-run adjustment in a perfectly competitive industry results in decreased industry output but leaves price unchanged. Which of the following must be true?
a. The market demand curve did not shift b. The market demand curve shifted left; the market supply curve shifted right c. The market supply curve shifted left; the market demand curve shifted right d. Both market supply and demand increased, but supply increased more than demand e. The industry is a constant-cost industry
Economic growth is measured by the percentage change in: a. potential nominal GDP
b. structural unemployment. c. the rule of 72. d. potential real GDP (LRAS).
At a price of $1 per table, the quantity supplied of tables is 100 units whereas the quantity demanded is 70 units. Given this information, which of the following statements is true?
A) $1 per table is the market clearing price. B) At $1 per table, there is a surplus in the market. C) At $1 per table, there is a shortage in the market. D) $1 per table is the equilibrium price.
Which of the following is a determinant of supply?
A) tastes and preferences of consumers B) technology C) consumer income D) number of consumers