If the economy is in a recession, the Fed is likely to:
A. buy bonds through open market operations.
B. increase the discount rate.
C. increase the reserve requirement.
D. print more currency.
A. buy bonds through open market operations.
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For something to serve as money, it must be
A) light, durable, and common. B) convertible to gold. C) backed by the authority of the government. D) generally accepted by buyers and sellers.
Small savers who only have enough money to buy a few individual financial assets can use ________ to diversify
A) mutual funds B) one company's bonds C) Treasury securities D) one company's stock
The Pennsylvania Turnpike is a tolled freeway running through the state of Pennsylvania. Motorists must pay tolls at various points along the Turnpike based on the distance they traveled on the freeway. Suppose that despite the tolls, many motorists in the urban areas use the Turnpike causing traffic to slow during peak times. What type of good would the Turnpike be classified as in this case?
a. private good b. club good c. common resource d. public good
Suppose that Argentina's dollar-denominated external assets and liabilities are $10 billion and $100 billion, respectively, and its Argentine peso-denominated external assets and liabilities are each 50 billion pesos (P). Suppose further that Argentina fixes its exchange rate at P1 = $US1. What is the dollar value of Argentina's total external wealth?
A) -$60 billion B) -$150 billion C) -$90 billion D) -$210 billion