If the Fed sells government securities, then there is
A. an increase in the supply of money.
B. an increase in the required reserve ratio.
C. a decrease in the discount rate.
D. a decrease in the supply of money.
Answer: D
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Which of the following is correct?
a. Studies of the effects of the minimum wage typically find that a 10 percent increase in the minimum wage raises the average wage of teenagers by 10 percent. b. The drop in teenage employment caused by a 10 percent increase in the minimum wage is not significant. c. The minimum wage is more often binding for teenagers than for other members of the labor force. d. All firms consistently enforce minimum-wage laws.
If you buy something with a gift card that you would never buy with your own money, you are exhibiting ______ behavior.
a. anchoring b. compartmentalizing c. framing d. gambling
Most poor families pay _____ federal personal income tax.
A. no B. a little C. a substantial part of their incomes in
Demand-side inflation is the rise in inflation caused by rapid growth of aggregate demand.
Answer the following statement true (T) or false (F)