When the Federal Reserve wishes to, in the long run, decrease inflation, it
A. will increase the money supply by selling bonds.
B. will decrease the money supply by selling bonds.
C. will increase the money supply by buying bonds.
D. has no policy options that will accomplish this.
Answer: B
Economics
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The demand curve facing a perfectly competitive firm is
a. perfectly elastic b. perfectly inelastic c. unit elastic d. downward-sloping e. identical to the industry demand curve
Economics
Which economic phenomenon is the short-run macro model most useful in explaining?
a. The sources of employment in the long run b. The trend of output in the long run c. The sources of cyclical unemployment d. The reasons why some workers become discouraged e. The sources of long-run economic growth
Economics