U.S. Treasury deposits at the Fed are ________ for the Fed but ________ for the Treasury. Thus an increase in U.S. Treasury deposits ________ the monetary base
A) a liability; an asset; increases
B) a liability; an asset; decreases
C) an asset; a liability; increases
D) an asset; a liability; decreases
B
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A neighbor plants flowers in their front yard, which you can view and enjoy from your window. From your perspective, this is an example of
A. an externality. B. marginal analysis. C. property rights. D. an opportunity cost.
Under a system of flexible exchange rates, a decrease in demand for a nation's currency in the foreign exchange market will: a. make it less expensive for foreigners to buy the nation's goods
b. make it more expensive for the nation to import goods. c. cause the nation's balance on current account to shift toward a deficit. d. all of the above
Points outside the production possibilities curve represent combinations of products that are:
A. attainable only if the economy's resources are fully employed. B. attainable only if the economy's resources are not fully employed. C. attainable if the economy's resources are either fully employed or not fully employed. D. unattainable.
Which of the following is a TRUE statement?
A) Externalities cannot be solved by market solutions and always require government action. B) Externalities would never be a problem if people were willing to comply with government regulations. C) Voluntary agreements can solve externality situations by making the party incurring the costs bear the costs of his or her actions. D) Externalities can only be handled by government regulation and emission taxes cannot work effectively.