If the Fed sells foreign assets, the monetary base will
A) fall by the amount of the sale, only if the Fed buys domestic bank deposits with the proceeds.
B) fall by the amount of the sale, only if the Fed buys domestic currency with the proceeds.
C) fall by the amount of the sale, whether the Fed buys domestic bank deposits or domestic currency with the proceeds.
D) rise by the amount of the sale.
C
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Representative money is
a. accepted on faith. b. found in M1 and M2 money measures. c. today in the form of check able deposits. d. redeemable for a commodity.
The advantage of real GDP as a measure is the fact that it only increases
a. True b. False Indicate whether the statement is true or false
In the long run, profits in a monopolistic competition market are zero because:
a. of government regulations. b. of collusion. c. firms are free to enter and exit the market. d. firms produce a differentiated product.
The effectiveness of expansionary fiscal policy is directly proportional to the level of _______ in the economy.
A. efficiency B. inefficiency C. inflation D. employment