13. A financial intermediary is a middle person between i l a. labor unions and firms. b. husbands and wives. c. buyers and sellers. d. borrowers and lenders. 14. Which of the following sets of government policies is the most growth oriented? ( ) a. lower taxes on the returns to saving, provide investment tax credits, and lower the deficit b. lower taxes on the returns to saving, provide investment tax credits, and in crease the deficit c. increase taxes on the returns to saving, provide investment tax credits, and lower the decit d. increase taxes on the returns to saving, provide investment tax credits, and increase the deficit 15. Which of the following policy actions by the Fed is likely to increase the money supply? ( ) a. reducing reserve requirements b. selling government bonds c. increasing the discount rate d. increasing interest on reserves 16. In the long run, ination is caused by( l a. banks that have market power and refuse to lend money. b. governments that raise taxes so high that it increases the cost of doing business and, hence, raises prices. c. governments that print too much money. d. increases in the price of inputs, such as labor and oil. 17. The initial effect of an increase in the money supply is to l l a. increase the price level. b. decrease the price level. c. increase the interest rate. d. decrease the interest rate. 18. The original Philllps curve Illustrates { l a. the trade-off between inflation and unemployment. b. the positive relationship between inflation and unemployment. c. the trade-off between output and unemployment. d. the positive relationship between output and unemployment. 19. A minimum-wage law tends to l l a. create more unemployment in high-skill job markets than in low-skill job markets. b. create more unemployment in low-skill job markets than in high-skill job markets. c. have no impact on unemployment as long as it is set above the competitive equilibrium wage. d. help all teenagers because they receive a higher wage than they would otherwise. 20. According to the Bureau of Labor Statistics, a husband who chooses to stay home and take care of the household is l l a. unemployed. b. employed. c. not in the labor force. d. a discouraged worker. 21. The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ( ) a. compound value. b. future value. c. present value. d. fair value. 22. Which of the following should cause the price of a share of stock to rise? ( l a. a reduction in market risk b. an increase in expected dividends c. a reduction in the interest rate d. All of the above should cause the price to rise