When the Fed conducts open market operations, it
A) is engaging in fiscal policy.
B) purchases or sells government bonds issued by the U.S. Treasury.
C) shifts the demand for money curve.
D) also raises taxes at the same time.
B
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Which of the following is NOT identified by your text as a challenge to doing business in China?
A) Issues related to the business climate, such as taxes B) The availability of credit C) Licensing requirements D) Failure to protect intellectual property E) Poor infrastructure and port facilities to support export of products
The effectiveness lag is
A) the time it takes for policy makers to obtain data indicating what is happening in the economy. B) the time it takes for policy makers to be sure of what the data are signaling about the future course of the economy. C) the time it takes to pass legislation to implement a particular policy. D) the time it takes for policy makers to change policy instruments once they have decided on the new policy. E) the time it takes for the policy actually to have an impact on the economy.