Which of the following actions would help the Fed increase the supply of money in the economy?
a. buying government bonds
b. raising the reserve ratio
c. selling government bonds
d. raising the discount rate
a. buying government bonds
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Data for an economy show that the unemployment rate is 6 percent, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are employed in this economy?
A. 300 million B. 188 million C. 30 million D. 282 million
Classifying a good as rival means
A) that when one person consumes a unit of the good no one else can consume it. B) anyone who does not pay for the good cannot consume it. C) that the good is produced in a competitive market. D) that there is a shortage of the good.
Suppose that personal income is $250 billion. Furthermore, assume that retained corporate earnings are $2 billion, social security taxes are $15 billion, social security benefit checks equal $16 billion, the capital consumption allowance is $32 billion, and corporate taxes amount to $40 billion. The national income of this nation will be:
a. $236 billion. b. $249 billion. c. $251 billion. d. $279 billion. e. $290 billion.
Each person in the population can be classified as employed or unemployed
a. True b. False Indicate whether the statement is true or false