If the Fed wants to lower the federal funds rate through open market operations, it ________
A) decreases tax rates B) increases tax rates C) sells bonds D) buys bonds
D
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The poverty line is based on the percentage of people who cannot afford an adequate diet
a. True b. False Indicate whether the statement is true or false
Honduras is an importer of goose-down pillows. The world price of these pillows is $50 . Honduras imposes a $7 tariff on pillows. Honduras is a price-taker in the pillow market. As a result of the tariff, the price of goose-down pillows in Honduras
a. remains at $50 and the quantity of goose-down pillows purchased in Honduras decreases. b. increases to $57 and the quantity of goose-down pillows purchased in Honduras decreases. c. increases to a new price between $50 and $57 and the quantity of goose-down pillows purchased in Honduras decreases. d. increases to a new price above $57 and the quantity of goose-down pillows purchased in Honduras remains the same.