Econ 3
Free trade based on comparative advantage is economically beneficial because:
-it promotes an efficient allocation of world resources -it increases competition -it provides consumers with a wider range of products
The fact that international trade specialization and trade based on comparative advantage can increase world output is demonstrated by the reality that
A nations trading possibilities line lies to the right of its production possibilities line
The federal reserve requires who to deposit all reserves in the federal reserve bank
All depository institution
Which of the following can result in production efficiencies among nations producing a particular good
All of the above
How do banks increase their actual cash reserves on hand
Borrow from the federal reserve
How do commercial banks increase their lending ability
Borrow from the federal reserve bank
Which of the following is a labor intensive commodity
Cameras
Which of the following is not a tool of monetary policy
Changes in tax rates
The FOMC changes money supply by
Changing the discount rate changing the reserve ratio and buying or selling securities
If the FED sells bonds to the public what happens to commercial banks
Decrease the banks reserves
I'm recent years the untied states has
Exported more services than imported
Who is in control of the US monetary policy
Federal open market committee in the federal reserve
What happened when the FED purchased government securities from the United States citizens
Increase amount of money in circulation
What is the discount rate
Interest rate changed by the federal reserve to commercial banks
How to commercial banks increase their reserves
Purchase of bonds in the federal reserve open market
What are open market operations
Purchases or sales of government securities by the FED
What happens when federal reserve banks bit government securities from commercial banks
The banks checkable deposits are unchanged but their reserves increase
What is monetary policy used for
To change the money supply of the United States
What are securities that are bought and sold in open market operations
Treasury bills and bonds
In comparing monetarism and rational expectations theory we find that
both favor policy rules, but for different reasons.