When the Fed purchases government securities from a commercial bank, the bank
a. loses its ability to make loans.
b. automatically becomes poorer.
c. loses equity in the Fed.
d. receives reserves that can be loaned out.
d
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The above table shows some of the balance of payments accounts for Urland. What is Urland's balance on the current account?
A) $80 billion B) $62 billion C) $84 billion D) $47 billion
Which of the following is NOT a possible cause of structural unemployment?
A) individuals take the time to search for the best job opportunities B) a mismatch of worker training and skills with requirements of employers C) government-imposed minimum wage laws D) union activity that sets wages above the equilibrium level
To keep employees from shirking, you can invest in greater monitoring
a. even though monitoring is expensive b. especially when monitoring is efficient c. when employees respond well to incentive contracts d. when incentives solve both moral hazard and adverse selection problems with employees
Fixed costs exist only in:
A. labor-intensive markets. B. the long run. C. the short run. D. capital-intensive markets.