Suppose the Fed conducts an open market sale of bonds. This monetary policy action will tend to cause
A) the price of bonds to increase and the interest rate to increase.
B) the price of bonds to increase and the interest rate to decrease.
C) the price of bonds to decrease and the interest rate to increase.
D) the price of bonds to decrease and the interest rate to decrease.
C
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Which of the following is a factor that determines the shape of the aggregate demand curve?
A) the real-balance effect B) the wage effect C) the nominal-balance effect D) the price level effect
Figure 11-5
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Figure 11-5 contains a production possibilities frontier for wheat and milk production. Explain why Point C is not a point where resources are being used efficiently.
What will be an ideal response?
Which of the following is(are) true regarding the median voter model?
a. In majority voting systems, either the right-wing or the left-wing wins, and so the median voter is the only voter guaranteed not to get his/her preferences met. b. In majority voting systems, the median voter is always a part of the losing side, and so no voter wants to be the median voter. c. In majority voting systems, the median voter determines which outcome wins. d. In majority voting systems, the median voter is always a part of the wining side, and so no voter wants to be the median voter.
Bonnie is debating whether to take a job as a professional therapist or a florist. She will earn $40,000 a year as a therapist or $30,000 a year as a florist. If she chooses to be a therapist, the opportunity cost is
A) $40,000. B) $30,000. C) $10,000. D) unable to determine.