If the Fed sells U.S. government securities to banks, the federal funds rate ________ and banks' reserves ________
A) falls; increase
B) rises; increase
C) falls; decrease
D) rises; do not change
E) rises; decrease
E
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What are the two types of prices in an economy?
What will be an ideal response?
Along any downward sloping straight-line demand curve:
A) both the price elasticity and slope vary. B) the price elasticity varies, but the slope is constant. C) the slope varies, but the price elasticity is constant. D) both the price elasticity and slope are constant.
Payments made out of earnings, in the form of either cash or stock, to the owners and shareholders of a business are known as
a. distributions b. dividend payments c. retained earnings d. salaries e. business expenses
Unemployment that results because the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one is called
a. the natural rate of unemployment. b. cyclical unemployment. c. structural unemployment. d. frictional unemployment.