The Fed's purchase of U.S. government securities constitutes
a. a restrictive policy because it lowers the amount of total reserves in the banking system.
b. a restrictive policy because it lowers the amount of excess reserves in the banking system.
c. an expansionary policy because it raises the amount of total reserves in the banking system.
d. an expansionary policy because it lowers the amount of required reserves in the banking system.
C
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According to international trade theory, a country can gain
a. if it protects domestic industries from low-wage foreign producers. b. only if the trade harms its trading partners. c. by importing goods when they can be obtained more economically from foreign producers. d. if it maximizes the employment in domestic industries that face competition from foreign producers who have lower costs.
Using the data in the above table, what is the real GDP for year 2020 (in billions of constant dollars)?
A. 9,250 B. 7,708 C. 8,950 D. 8,500