If the Federal Open Market Committee decides to expand the money supply, then it will
A. raise the discount rate to member banks.
B. issue directions to purchase government securities, thus putting more reserves in member banks.
C. issue directions to sell government securities, thus taking reserves from member banks.
D. order new Federal Reserve notes delivered to member banks.
Answer: B
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In a change to immigration policy during 2012, "people younger than 30 who came to the United States before the age of 16, pose no criminal or security threat, and were successful students or served in the military can get a two-year deferral from
deportation", Homeland Security Secretary Janet Napolitano said, according to CNN, 06/16/2012. If many of these immigrants had previously been afraid to work, now as a result of being able to work legally A) both the short-run and long-run aggregate supply curves shift rightward. B) only the long-run aggregate supply curve shifts rightward. C) only the short-run aggregate supply curve shifts rightward. D) neither the short-run nor the long-run supply curve shift.
The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10 and Jane's budget is $88. What is Jane's total utility when she maximizes her utility?
A) 70 units B) 1516 units C) 2536 units D) 2586 units
Under perfect competition,
A. final products are distributed among households equitably. B. resources are allocated among firms equitably. C. the system produces the goods and services consumers want. D. All of the above are correct.
Which is not a commonly heard argument for protectionism?
A. A strong national defense requires that some military products be produced domestically B. Infant industries need short-term protection from foreign competition in order to grow C. Specialization along the lines of comparative advantage can lead to some economic instability in a nation D. When other nations' economies grow they typically import fewer goods and services