If the Federal Reserve sells bonds in the open market, A the money supply decreases, causing the price level to rise and the value of the dollar to decrease B the money supply increases, causing both the price level the value of the dollar to decrease C the money supply increases, causing the price level to drop and the value of the dollar to increase D the money supply increases, causing the price level to rise and the value of the dollar to decrease E the money supply decreases, causing both the price level the value of the dollar to increase F the money supply decreases, causing the price level to drop and the value of the dollar to increase Which of the following is considered a key fact about economic fluctuations as discussed in the lecture A Actually, all of these are listed as key facts B Most macroeconomic quantities tend to fluctuate independently of one another C Economic fluctuations are irregular and unpredictable D As output increases, unemployment also increases Does anyone benefit from inflation A Savers benefit at the expense of borrowers B Nobody benefits from inflation C Everybody benefits from inflation D Borrowers benefit at the expense of savers How is a non working full time student in college classified for purposes of determining the unemployment rate A The student is unemployed B The student is employed, since attending college is considered a job C The student is underemployed D The student is not in the labor force Which of the following types of unemployment make up the natural rate of unemployment A Structural Unemployment B Cyclical Unemployment C Both Frictional and Structural Unemployment D Frictional Unemployment E Both Structrural and Cyclical Unemployment F Both Cyclical and Frictional Unemployment G Frictional, Structural, and Cyclical Unemployment In macroeconomics, investment refers to (please get this right please get this right) A purchases of any kind of earning asset B purchases of equities, either newly issued or previously issued C purchases of newly issued equities (stocks) or debt (bonds) D purchases of machines and buildings used in production If the Fed increases the federal funds rate and or the discount rate, the money supply does what A It increases B It remains unchanged as the federal funds rate has no impact on the money supply C It decreases Suppose the Fed observed that a) Y

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 02, 2024

If the Federal Reserve sells bonds in the open market, A. the money supply decreases, causing the price level to rise and the value of

If the Federal Reserve sells bonds in the open market,

A. the money supply decreases, causing the price level to rise and the value of the dollar to decrease.
B. the money supply increases, causing both the price level the value of the dollar to decrease.
C. the money supply increases, causing the price level to drop and the value of the dollar to increase.
D. the money supply increases, causing the price level to rise and the value of the dollar to decrease.
E. the money supply decreases, causing both the price level the value of the dollar to increase.
F. the money supply decreases, causing the price level to drop and the value of the dollar to increase.

Which of the following is considered a key "fact" about economic fluctuations as discussed in the lecture?A. Actually, all of these are listed as key facts.

B. Most macroeconomic quantities tend to fluctuate independently of one another.
C. Economic fluctuations are irregular and unpredictable.
D. As output increases, unemployment also increases.

Does anyone "benefit" from inflation?

A. Savers benefit at the expense of borrowers.
B. Nobody benefits from inflation.
C. Everybody benefits from inflation.
D. Borrowers benefit at the expense of savers.

How is a non-working full-time student in college classified for purposes of determining the unemployment rate?

A. The student is unemployed.
B. The student is employed, since attending college is considered a job.
C. The student is underemployed.
D. The student is not in the labor force.

Which of the following types of unemployment make up the "natural rate of unemployment" ?

A. Structural Unemployment
B. Cyclical Unemployment
C. Both Frictional and Structural Unemployment
D. Frictional Unemployment
E. Both Structrural and Cyclical Unemployment
F. Both Cyclical and Frictional Unemployment
G. Frictional, Structural, and Cyclical Unemployment

In macroeconomics, investment refers to (please get this right...please get this right)

A. purchases of any kind of earning asset.
B. purchases of equities, either newly issued or previously issued.
C. purchases of newly-issued equities (stocks) or debt (bonds).
D. purchases of machines and buildings used in production.

If the Fed increases the federal funds rate and/or the discount rate, the money supply does what?

A. It increases.
B. It remains unchanged as the federal funds rate has no impact on the money supply.
C. It decreases.

Suppose the Fed observed that a) Y

sell bonds on the open market, driving the interest rate up and increasing AD growth.

buy bonds on the open market, driving the interest rate up and slowing AD growth.

buy bonds on the open market, driving the interest rate down and slowing AD growth.

sell bonds on the open market, driving the interest rate up and slowing AD growth.

buy bonds on the open market, driving the interest rate down and increasing AD growth.

sell bonds on the open market, driving the interest rate down and increasing AD growth.

When the Fed decreases the discount rate, the banks will borrow ____ from the Fed, lend _____ to the public, which causes the money supply to _____ (fill in the blanks)