Suppose, at a given federal funds rate, there is an excess supply of reserves in the federal funds market
If the Fed wants the federal funds rate to stay at that level, then it should undertake an open market ________ of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will ________. A) sale; increase
B) purchase; increase
C) sale; decrease
D) purchase; decrease
C
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In 1963, the government first adopted an official definition of poverty: families with incomes below $3,000
a. True b. False Indicate whether the statement is true or false
A patent is a government-imposed entry barrier because
A) it allows a firm to achieve economies of scale. B) it is a key input owned by the firm that is granted the patent. C) it limits the quantity of a good that can be imported into a country. D) it gives a firm the exclusive right to a new product for a period of 20 years from the date the product is invented.