Other things equal. an open market purchase of government securities by the Fed will not result in which of the following?
a. increased bond prices
b. a reduced volume of loans issued by the commercial banking system
c. decreased interest rates
d. an increase in the price level
b
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When the price of a bond decreases, all else equal, the bond demand curve
A) shifts right. B) shifts left. C) does not shift. D) inverts.
If a budget deficit is the result of expenditures for programs such as farm subsidies and Social Security, the burden on future generations is slight
a. True b. False Indicate whether the statement is true or false
In order to achieve a high economic freedom rating, a country must
a. provide secure protection of privately owned property and evenhanded enforcement of contracts. b. refrain from creating barriers that limit domestic and international trade. c. rely more fully on markets rather than governments to allocate goods and resources. d. all of the above.
Which of the following statements about the effects of rent control is correct?
a. The short-run effect of rent control is a surplus of apartments, and the long-run effect of rent control is a shortage of apartments. b. The short-run effect of rent control is a relatively small shortage of apartments, and the long-run effect of rent control is a larger shortage of apartments. c. In the long run, rent control leads to a shortage of apartments and an improvement in the quality of available apartments. d. The effects of rent control are very noticeable to the public in the short run because the primary effects of rent control occur very quickly.