Monetarists think that the Fed should use ________ as a target when conducting monetary policy
A) the inflation rate
B) the Treasury bill rate
C) the money supply
D) the federal funds rate
E) the unemployment rate
C
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Gwen’s decision to buy a new television instead of a bicycle for the same price
A. means that opportunity cost is zero since both cost the same amount. B. would not have involved trade-off and opportunity cost if Gwen had decided to put the money in a bank CD instead. C. would not imply a trade-off because of scarcity if Gwen were a multimillionaire. D. means that the opportunity cost to Gwen is the bicycle that she has given up.
Defining money becomes ________ difficult as the pace of financial innovation ________
A) less; quickens B) more; quickens C) more; slows D) more; stops
When Dr. Jay Rosenstein treats a rich 75-year-old retired farmer for pneumonia, the money he receives is part of the __________ category(ies) of government spending
a. Medicaid b. veterans' benefits c. agriculture d. health and hospitals e. income support, Social Security, and welfare
Which of the following have the same impact on the Fed's balance sheet?
A. An increase in loans by the Fed to banks and a decrease in foreign exchange reserves B. An open market purchase and an increase in loans by the Fed to banks C. An open market sale and an increase in foreign exchange reserves D. An open market purchase and a decrease in foreign exchange reserves