Open-Market Operations Directly and Immediately Affect

question 42

Multiple Choice

Open-market operations directly and immediately affect

• A)the monetary base.
• B)banks' holdings of securities.
• C)the Bank's holdings of foreign exchange.
• D)the money multiplier.

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Definitions:

Long-Run Cost Function

A representation of how the total production cost of a firm changes with output in the long run, when all inputs can be varied.

Positive Output

The production of goods or services in an amount greater than zero, indicating activity or productivity in economic terms.

Total Cost

The aggregate of expenses related to the creation of goods or services, which includes fixed costs and variable costs.

Long-Run

In economics, a period in which all factors of production and costs are variable, allowing for full adjustment to change.