Open-market operations are easy for the Federal Reserve to conduct and are therefore the tool of monetary policy that the Federal Reserve uses most often.
Answer the following statement true (T) or false (F)
True
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If autonomous spending decreases, then
A) the expenditure multiplier means that equilibrium expenditure increases by a larger amount. B) the expenditure multiplier means that equilibrium expenditure increases by a smaller amount. C) equilibrium expenditure does not change. D) the expenditure multiplier means that equilibrium expenditure decreases by a larger amount. E) equilibrium expenditure decreases by the same amount.
A share of common stock is a claim on a corporation's
A) debt. B) liabilities. C) expenses. D) earnings and assets.
The short run is
A) usually 3 - 6 months. B) dependent on the characteristics of the industry. C) when a firm has to decide whether or not to exit. D) identical to the long run for most firms.
If a pair-wise majority vote was held to determine which school project gets funded and the voters' preferences are shown in the table, if Ernie sets the agenda which option would he see was voted on first?
A. Library and lab
B. Computer lab and gym
C. Gym and library
D. It doesn’t matter which options are considered first.