An open-market operation in which the Federal Reserve purchases bonds will
a. increase the money supply and increase the price level.
b. decrease the money supply and decrease real GDP.
c. decrease the money supply and increase the price level.
d. decrease the money supply and increase real GDP.
Ans: a. increase the money supply and increase the price level.
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A union requirement that a fireman has to be hired to work in a diesel locomotive would be an example of
A) work expansion. B) featherbedding. C) work requirements. D) work stabilization.
The aggregate supply curve will shift to the left if
A. energy prices fall. B. technology and productivity increase in the economy. C. the capital stock of the economy increases. D. the money wage rate increases.
Which of the following describes a trade deficit?
a. Exports plus imports b. Exports divided by imports c. Exports multiplied by imports d. Exports exceed imports e. Imports exceed exports
The interest rate that the Federal Reserve pays banks on the reserves they hold is called the
a. open-market rate. b. discount rate. c. preference rate. d. None of the above are correct.