When the Federal Reserve wants to stimulate the economy, it is likely to

a. increase the reserve requirement.
b. increase the discount rate.
c. buy government bonds from banks and other businesses.
d. increase the margin requirements.
e. prohibit borrowing from commercial banks.


Answer: c. buy government bonds from banks and other businesses.

Economics

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Unlike social insurance taxes, income taxes are paid on wages only

Indicate whether the statement is true or false

Economics

If the cross price elasticity of demand for tacos with respect to burritos equals +2.5, then: a. a 1% increase in the quantity of burritos purchased will lead to a 2.5% increase in the price of a taco

b. a 10% increase in the price of a burrito will lead to a 25% increase in the quantity of tacos demanded at a given price. c. a 1% decrease in the price of a burrito will lead to a 2.5% increase in the quantity of tacos demanded at a given price. d. a 1% increase in the quantity of tacos purchased will lead to a 2.5% increase in the price of a burrito.

Economics

Which one of the following people would be counted as unemployed in Canada?

A) Sharon recently began looking for work after staying at home for 10 years to look after her children. B) Maurice is on a 2 month vacation out of the country but is still looking for a job using the internet. C) Kanhaya has stopped looking for work since he was unable to find a suitable job during a two -month search. D) Doris works only 5 hours a week but is looking for a full -time job. E) Taylor is a homemaker.

Economics

It is stated that, in democracy, every vote counts. To be a contentious voter in a democracy, one should

A. spend some time learning about the issues. B. find out about the positions of the candidates. C. be sure to vote. D. all of these answer options are correct.

Economics