If the Fed has announced that it plans on lowering the interest rate it will
A. engage in contractionary open market operations, thereby decreasing the money supply.
B. engage in expansionary open market operations, thereby decreasing the money supply.
C. engage in contractionary open market operations, thereby increasing the money supply.
D. engage in expansionary open market operations, thereby increasing the money supply.
Answer: D
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Which of the following would you expect to increase both interest rates and exchange rates?
A) expansionary monetary policy B) contractionary monetary policy C) expansionary fiscal policy D) Both B and C will increase both interest rates and exchange rates.
A government program that attempts to stimulate domestic production of a good in which the country has a natural comparative advantage because of its domestic resources is an example of a(n) ________ policy
A) primary-export-led B) import-substitution development C) outward-looking development D) linkage-effect
The total earnings of a worker are represented by E = 150 + $12(24 ? L), where E is earnings and L is the number of hours of leisure. How much will the worker earn if he takes 16 hours of leisure per day?
A. $278 B. $342 C. $96 D. $246
Scalping at major sporting events is an example of
A. a black market caused by a price floor. B. the operation of rationing by the market. C. a black market caused by a price ceiling. D. a surplus caused by the existence of price ceilings.