What happens when the Fed aims to change interest rates?
A) It asks Congress to legislate new interest rates.
B) It buys or sells government bonds on the open market to achieve the desired rate.
C) It buys or sells dollars on the foreign exchange market to achieve the desired rate.
D) It announces a new discount interest rate.
B
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The escape clause in U.S. trade law:
a. enables the United States to withdraw from NAFTA. b. permits the U.S. government to impose trade barriers if fairly traded imports are the cause of significant injury to a U.S. industry and its workers. c. permits the government to impose trade remedies against nations that unfairly subsidize their exports to the United States. d. enables immigrants to return to their home countries.
Refer to the figure above. After the market changes from perfectly competitive to a monopoly:
A) the social surplus decreases. B) the market price decreases. C) the deadweight loss decreases. D) the consumer surplus increases.