What restricts the Fed's ability to write checks and purchase U.S. securities?
a. Congress; the Fed must receive a budget allocation from Congress before it can write a check.
b. The gold requirement; the Fed cannot write a check unless it has a sufficient amount of gold to back the expenditure.
c. Reserve requirements; the Fed must maintain 20 percent of its assets in the form of cash against the deposits that it is holding for commercial banks.
d. Nothing; the Fed can create money simply by writing a check on itself.
D
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Suevania opens its doors to trade with Barvania. Barvania has a comparative advantage in the production of machinery. Hence, once trade occurs Suevania's consumers will buy ________ machinery and pay ________ before
A) more; a lower price than B) the same amount of; the same price as C) less; a higher price than D) more; a higher price than E) less; a lower price than
Of the following OECD countries, which has the highest life expectancy at birth?
A) the United Kingdom B) Japan C) Canada D) the United States
If the absolute value of the price elasticity of demand for gasoline is 0.5, then a 10 percent increase in the price of gasoline leads to a 0.5 percent decrease in the quantity demanded
Indicate whether the statement is true or false
Economics is a
A) hard science. B) physical science. C) natural science. D) social science.