Which of the following statements is false?
A. The list of stocks that are included in the Dow Jones Industrial Average changes from time to time, and is determined by the editors of the Wall Street Journal.
B. The Dow Jones Industrial Average first appeared on the scene in 1896.
C. When the Dow Jones Industrial Average was first computed, prudent investors bought bonds, not stocks.
D. The Dow Jones Industrial Average is computed by summing the prices of the thirty stocks included in the average and dividing by 30.
Answer: D
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A reason why an increase in the price level decreases the quantity of real GDP demanded is that
A) the buying power of money increases. B) potential GDP decreases. C) the price of domestic goods and services increases relative to foreign goods and services. D) the real interest rate falls. E) the inflation rate decreases.
When did the Fed first begin to use open market operations as a policy tool?
A) the 1920s B) the 1930s C) the 1960s D) the 1980s