Once the Fed decides on the interest rate it wants in the federal funds market, its most common method of achieving this rate is by
A) changing tax rates. B) conducting open market operations.
C) altering exchange rates. D) changing reserve requirements.
B
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If the US dollar appreciates in the FOREX, US imports and exports are most likely to change in which of the following ways imports; exports
a increase; remain unchanged b. increase; increase c. increase; decrease d. decrease; remain unchanged e. decrease; decrease
Exhibit 5-7 GDP data (billions of dollars) Personal consumption expenditures$5,207 Interest425 Corporate profits735 Government spending1,406 Depreciation830 Rental income146 Gross private domestic investment1,116 Compensation of employees4,426 Exports870 Imports965 Indirect business taxes553 Proprietors' income520 Personal taxes886 Social Security taxes432 Transfer payments376 In Exhibit 5-7, disposable personal income (DI) is:
A. $5,127 billion. B. $5,608 billion. C. $6,254 billion. D. $6,495 billion.
A nearly vertical aggregate supply curve occurs
A. when the economy is producing close to the maximum output level. B. whenever an economy is in a recession. C. in an economy with considerable cyclical unemployment. D. in an economy with much idle capacity.
Because farm products have a low elasticity of demand, a small change in output will have
A. An indeterminate effect on price. B. A smaller effect on price. C. A larger effect on price. D. No effect on price.