Open market operations generally involve the purchase and sales of
a. government securities.
b. stocks and bonds.
c. coins and currency.
d. Federal Reserve notes.
a
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Suppose the current account has a value of $500,000 and the financial account has a value of $525,000. The value of the capital account is ________.
A. $25,000 B. -$1,025,000 C. $1,025,000 D. -$25,000
According to the Taylor rule, does the target for the federal funds rate respond differently for an increase in inflation caused by an increase in aggregate demand and for an increase in inflation caused by a decrease in short-run aggregate supply?
Explain whether there is or is not a difference in how the target for the federal funds rate changes.
Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. What combinations of customers can Anna expect?
a. High value, high value b. High value, low value c. Low value, low value d. All of the above
The short-run aggregate supply curve (SRAS) is based on the theory that wages are flexible
a. True b. False Indicate whether the statement is true or false