When the Fed purchases government bonds the money supply _____ and the federal funds rate _____
Fill in the blank(s) with correct word
increases, decreases
You might also like to view...
A minimum wage set above the equilibrium wage
A) decreases the deadweight loss in the market. B) decreases the workers' surplus because workers must spend resources looking for jobs. C) increases the firm's surplus. D) increases the market's efficiency. E) has no effect on the market.
All of the following are conditions which are favorable to the formation of cartels except
A) the existence of a small number of firms. B) geographic proximity of firms. C) homogeneity of the product. D) easy entry into the industry.
According to a new Keynesian theorist, a correctly anticipated increase in aggregate demand will
A) cause the price level to increase by a greater amount in the short run than what a new classical rational expectations theorist would predict. B) cause the price level to increase by a smaller amount in the short run than what a new classical rational expectations theorist would predict. C) cause the price level to increase by the same amount in the short run that a new classical rational expectations theorist would predict. D) leave the price level unchanged in the short run, but Real GDP will increase more than what a new classical theorist would predict. E) leave the price level unchanged in the short run, but Real GDP will increase less than what a new classical theorist would predict.
The most common type of firm in the United States is the
A. corporation. B. proprietorship. C. partnership. D. limited partnership.