Between 1929 and 2005 in the United States, as measured by the Lorenz curve, income inequality:

Which of the following is true about the Federal Reserve and its ability to prevent recessions? The Federal Reserve

A) can fine tune the economy and realistically hope to keep the economy from experiencing recessions. B) cannot realistically fine tune the economy and has little to no effect on the magnitude and length of recessions. C) does not try to eliminate recessions, but instead focuses on preventing inflation. D) cannot realistically fine tune the economy, but seeks to keep recessions shorter and milder than they would otherwise be.

In the simple deposit expansion model, an expansion in checkable deposits of $1,000 when the required reserve ratio is equal to 10 percent implies that the Fed

A) sold $1,000 in government bonds. B) sold $100 in government bonds. C) purchased $1000 in government bonds. D) purchased $100 in government bonds.