If the Fed carries out an open market operation and sells U.S. government securities, the federal funds rate ________ and the quantity of reserves ________
A) falls; decreases
B) rises; increases
C) rises; decreases
D) rises; does not change
E) falls; increases
C
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In the production possibilities frontier depicted in the figure above, which of the following combinations of hats and bananas is inefficient?
A) 4 million pounds of bananas and 4 million hats B) 2 million pounds of bananas and 5 million hats C) 0 pounds of bananas and 6 million hats D) 1 million pounds of bananas and 3 million hats
A consumer price index of 160 in 1996 with a base year of 1982-1984 would mean that the cost of the market basket
A) equaled $160 in 1983. B) rose 160% from the cost of the market basket in the base year. C) rose 60% from the cost of the market basket in the base year. D) equaled $160 in 1996.
The program Save More Tomorrow (SMarT) is:
A. an experimental "forced savings" program. B. the "forced savings" program in Italy. C. a voluntary savings program that involves people learning how to find high-interest accounts so their savings is worth more tomorrow. D. a voluntary savings program that commits a fraction of future raises to be put directly into savings.
Which of the following is excluded in the current account?
a. Goods exports. b. Goods imports. c. Capital inflow and outflow. d. Net unilateral transfers.