Suppose the Fed conducts an open market purchase of bonds. This monetary policy action will tend to cause
A) the price of bonds to increase, and the interest rate to increase.
B) the price of bonds to increase, and the interest rate to decrease.
C) the price of bonds to decrease, and the interest rate to increase.
D) the price of bonds to decrease, and the interest rate to decrease.
B
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Based on the above table, which of the following is the efficient quantity of output?
A) 31 B) 16 C) 32 D) None of the above answers is correct.
According to Nobel Prize winner Douglass North, the most important factor in limiting economic growth in developing countries today is ________
A) the relatively low level of saving B) the relatively high rate of inflation C) the inability to develop effective low-cost contract enforcement D) the inadequate state of the health care system