When the Federal Reserve wants to increase the money supply it _____ on the open market; when it wants to reduce the money supply is ______ on the open market.
Fill in the blank(s) with the appropriate word(s).
buys; sells
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Which of the following statements is correct for an open economy with a trade surplus?
a. The trade surplus cannot last for very many years. b. The trade surplus must be offset by negative net capital outflow. c. The trade surplus implies that the country's national saving is greater than domestic investment. d. None of the above is correct.
Sin taxes are most effective when imposed on goods for which:
A. both demand and supply are elastic. B. demand is elastic and supply is inelastic. C. both demand and supply are inelastic. D. demand is inelastic and supply is elastic.
It's difficult to measure asset inflation because asset prices can increase when assets become more productive.
Answer the following statement true (T) or false (F)
Some firms in the technology sector have achieved economies of scale because costs have been reduced by:
A. socially optimal pricing. B. price discrimination. C. fair return pricing. D. simultaneous consumption.