If inflation in Russia is higher than it is in the United States,
A) the value of the dollar will rise in the long run.
B) the purchasing power of the ruble in buying Russian goods will rise relative to the dollar.
C) the value of the ruble will rise in the long run.
D) Both A and C are correct.
A
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To lower the federal funds rate, the Fed conducts an open market ________ of securities which ________
A) purchase; increases the demand for reserves B) sale; increases the supply of reserves C) purchase; decreases the demand for reserves D) sale; increases the demand for reserves E) None of the above answers is correct.
Increases in the minimum wage are intended to raise the incomes of low-income workers. Many economists favor a different policy to achieve this goal, a policy that avoids the deadweight losses that result from the minimum wage
What is this policy? A) distribution of vouchers that can be used for rent or mortgage payments B) the earned income tax credit C) the Alternative Minimum Tax D) distribution of food stamps to low-income consumers