Open market operations refers to the Fed's
A) manipulation of the required reserve ratio.
B) purchase and sale of government bonds.
C) manipulation of the discount rate.
D) use of all of the above techniques.
B
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Social Security provides incentive for individuals to
(a) save more than they consume during their working years. (b) manage their assets privately in order to prepare to live on principal and interest during retirement. (c) rely on transfer payments made by the working class to them during retirement. (d) carefully manage their private retirement portfolios and use the income earned to consume and save during retirement.
When a firm's demand curve is tangent to its average total cost curve: a. the firm must be operating in a monopolistically competitive market. b. economic profits are zero
c. the firm must be earning economic profits. d. the firm must be incurring economic losses.
One benefit of automatic stabilizers is that they
a. decrease consumption during a recession below what it would otherwise be b. make GDP more volatile c. cause the cyclical deficit to fall during a recession d. increase consumption during a recession above what it would otherwise be e. increase consumption during an expansion above what it would otherwise be
The International Monetary Fund was established to manage the Bretton Woods System
a. True b. False Indicate whether the statement is true or false