When the Fed conducts open-market sales,
a. it sells Treasury securities, which increases the money supply.
b. it sells Treasury securities, which decreases the money supply.
c. it auctions term loans, which increases the money supply.
d. it auctions term loans, which decreases the money supply.
b
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The difference between voluntary and involuntary unemployment is that:
a. involuntary unemployment exists when wages are high. b. voluntary unemployment exists in equilibrium. c. voluntary unemployment falls as wages rise. d. both b and c. e. all of the above.
Measuring poverty using an absolute income scale like the poverty line can be misleading because
a. income measures do not include the value of in-kind transfers. b. money is more highly valued by the rich than by the poor. c. the poor are not likely to participate in the labor market. d. income measures are not adjusted for the effects of labor-market discrimination.
A bond is
A) a debt instrument, that is, the issuer has taken out a loan. B) an equity instrument, that is, the buyer has purchased ownership in the issuer's firm. C) the same thing as a stock. D) a short-term loan from the government.
Acres of LandTanks of FertilizerTruckloads of Potatoes2002820170202105203135204152205141
Refer to Table 2.4. Increasing the tanks of fertilizer from 4 to 5 will:
A. increase truckloads of potatoes. B. decrease truckloads of potatoes. C. have no effect on truckloads of potatoes. D. require more acres of land.