Which of the following will not increase the money supply in the United States?
A) lowering the required reserve ratio
B) Fed purchases of government securities on the open market
C) lowering the discount rate relative to the federal funds rate
D) Fed sales of government securities on the open market
E) none of the above
D
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Refer to Figure 16-5. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely pursue
A) expansionary fiscal policy. B) expansionary monetary policy. C) contractionary fiscal policy. D) contractionary automatic stabilizers. E) contractionary monetary policy.
An example of a price shock is ________
A) an increase in wages as a result of higher expected inflation B) the arrival of immigrants seeking employment C) the decline in autonomous spending that results from rising unemployment D) all of the above E) none of the above
If the supply curve of labor facing a firm is upward sloping, this implies that
a. the firm is unable to hire additional workers b. to hire additional workers, the firm must increase the wage rate c. any number of workers can be hired at a fixed wage d. additional workers can be hired at lower wage rates e. the demand curve for the firm's good must be horizontal
Unemployment insurance __________ the amount of unemployment
Fill in the blank(s) with correct word