If the interest rate is below the Fed's target, the Fed should
a. buy bonds to increase bank reserves.
b. buy bonds to decrease bank reserves.
c. sell bonds to increase bank reserves.
d. sell bonds to decrease bank reserves.
d
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A ration coupon limits how much a producer can produce
Indicate whether the statement is true or false
Recession come at
a. regular intervals. During recessions consumption spending falls relatively more than investment spending. b. regular intervals. During recessions investment spending falls relatively more than consumption spending. c. irregular intervals. During recessions consumption spending falls relatively more than investment spending. d. irregular intervals. During recessions investment spending falls relatively more than consumption spending.
The unemployment rate tends to be higher in the European Union as compared to the United States
Indicate whether the statement is true or false
The purchasing power parity theory states that
A) exchange rates between any two currencies will adjust to reflect changes in the relative price level of the two countries. B) exchange rates between any two currencies will adjust to reflect change in the relative income growth rates of the two countries. C) the larger the economic growth rate in a country, the less likely its currency will depreciate in value. D) exchange rates cannot be compared over time. E) currencies appreciate as often as they depreciate.