If the Fed buys bonds in an open market operation, which of the following is most likely to occur?
a. the equilibrium level of GDP will decrease.
b. the money supply will decrease.
c. the aggregate demand curve will shift to the right.
d. the interest rate will rise.
e. the aggregate supply curve will shift to the left.
C
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Which of the following is TRUE about the political and market systems of voting?
A) The political voting system functions according to proportional rule, while the market voting system functions according to majority rule. B) The political voting system functions according to majority rule, while the market voting system functions according to proportional rule. C) The political voting system functions according to minority rule, while the market voting system functions according to majority rule. D) The political system and the market system are identical.
Economic models are abstractions from reality
Indicate whether the statement is true or false