If the Fed makes an open market purchase of $1 million of government securities, the monetary base
A) is unchanged in size, though its composition changes.
B) will decrease by a multiple of $1 million over time.
C) will increase by a multiple of $1 million over time.
D) is decreased by $1 million.
E) is increased by $1 million.
E
Economics
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The Latin term "ceteris paribus" means
A) "obviously true." B) "what is true of the whole is not necessarily true of the parts." C) "false unless proven true." D) "other things remaining the same." E) "after this, therefore because of this."
Economics
Classical growth theory predicts that economic growth
A) is merely an illusion. B) will continue at the classical rate of 3 percent forever. C) occurs because of hard-working citizens. D) decreases the supply of labor. E) will eventually stop because of population growth.
Economics