Which of the following would not fall under the description of unconventional monetary policy by the Federal Reserve?
A. Opening lending facilities to noncommercial banks
B. Lowering the reserve requirement for banks
C. Accepting lower quality assets as collateral for loans
D. Directly purchasing short-term bonds from money market mutual funds
Answer: B
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What is meant by the term "marginal analysis"? Suppose an individual has to choose between renting four apartments at different distances from his place of work
The individual has to commute to work on five days of the week and as such will require different quantities of gasoline depending on the apartment he decides to rent. The monthly rents and expected gasoline consumption from each of the apartments is shown in the table below. If the price of gasoline is $5 per gallon, using marginal analysis, determine the optimum choice for the individual. Which principal is used for this optimization? What does it state? Apartment Gasoline Consumption (gallons per month) Rent ($ per month) 1 5 1,100 2 10 1,000 3 15 960 4 20 940
The budget deficit is defined as
A) T + (G + TR), and this is negative. B) T - (G + TR), and this is positive. C) T - (G + TR), and this is negative. D) T + (G - TR), and this is negative.
By the standard of low-grade bonds, interest rates were ________ and monetary policy was ________ during the Great Depression
A) low; tight B) low; easy C) high; tight D) high; easy
A labor union is a(n)
a. single seller of labor on the labor market b. single buyer of labor on the labor market c. organization of workers who produce goods that are sold in union shops d. organization of workers who typically strike to obtain high wage rates e. organization of workers who refuse to work unless they are paid a wage rate above MRP