Which one of the following is a tool of monetary policy often used by the Fed for altering the reserves of commercial banks?
A. Issuing currency
B. Check collection
C. Open-market operations
D. Required reserve ratio
C. Open-market operations
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. In a deposit-refund system, the deposit makes the polluter internalize the externality by absorbing the cost of any damage it might generate in advance. 2. To effectively internalize the externality, the deposit component of a deposit-refund system must raise the MPC of illegal waste disposal by the MECmeasured at the competitive output level. 3. Suppose that Firm 1 and Firm 2 face marginal abatement costs of MAC1 = 2.5A1 and MAC2 = 1.5A2, respectively, and that tradeable permits for pollution are issued such that a total of 20 units must be abated. If firm 1 abates 7.5 units, and firm 2 abates 12.5 units, then both firms have an incentive to trade. 4. If Firm X is abating 9 units with an MACX = 0.6AX, and Firm Y is abating 11 units with an MACY = 0.9AY, then Firm Y should do less of the abating and Firm X should do more in order to lower the overall costs of abatement.
Profits resulting from luck can be distinguished from profits attributable to shrewd predictions by
A) calculating the opportunity cost of earning the profits. B) comparing the profits with interest rates. C) finding out whether they lead to reduced revenue or increased costs. D) no known empirical test. E) whether or not they were generally anticipated.
If the U.S. exchange rate rises, the price to foreigners of U.S.-produced goods and services ________ and the quantity of U.S. dollars demanded ________
A) rises; decreases B) rises; increases C) falls; decreases D) falls; increases
In order for the classical model to explain expansions and recessions, which of the following would have to be true?
a. Labor supply could not change. b. The labor market equilibrium would have to change suddenly and significantly. c. Labor demand could not change. d. The labor market equilibrium would have to change slowly. e. The labor market equilibrium could not move.