If the amount paid as unemployment benefits decreases, the opportunity cost of job search
A) falls and people stay unemployed for a shorter time.
B) rises and people would stay unemployed longer.
C) rises and people stay unemployed for a shorter time.
D) falls and people stay unemployed for a longer time.
E) is not affected because unemployment benefits do not change job availability.
C
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A restriction on bank activities that was repealed in 1999 was
A) the prohibition of the payment of interest on checking deposits. B) restrictions on credit terms. C) minimum down payments on loans to purchase securities. D) separation of commercial banking from the securities industries.
It is the responsibility of the Trading Desk at the Federal Reserve Bank of New York to implement policies in the form of
A) changes in the spread between the federal funds rate and the discount rate that are consistent with rules established by the twelve Federal Reserve bank presidents. B) variations in reserve requirements that are consistent with the announcements by the Chair of the Fed's Board of Governors. C) changes in foreign exchange rates that are consistent with policies established by the Secretary of the Treasury. D) buying or selling government securities that are consistent with the FOMC Directive.