The Fed can change the money supply by buying or selling long-term Treasury bonds. Purchasing long-term securities is commonly called:
A. open market operations.
B. discount operations.
C. federal funds speculation.
D. quantitative easing.
Answer: D
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Which of the following serves as the central bank for the United States?
A) the Federal Deposit Insurance Corporation B) the U.S. Treasury Department C) the Federal Reserve System D) the World Bank
A new law passed in Bonland requires all bikers to wear helmets while riding. It also states that those who do not wear helmets while riding will be punished. This law is likely to lead to a(n) ________
A) decrease in government expenditure B) increase in government expenditure C) decrease in tax rates D) increase in the overall price level
Unemployment is not caused by
A. drops in actual GDP. B. persons looking for more suitable jobs. C. inflation. D. technological disruption.
Suppose the natural rate of unemployment is 6 percent. What is the actual rate of unemployment if actual output is 2 percent below potential output?
A. 4 percent B. 8 percent C. 10 percent D. 7 percent