If the Federal Open Market Committee Wants to Decrease the Money

question 47

Multiple Choice

If the Federal Open Market Committee wants to decrease the money supply through open market operations it will

• A)buy U.S.Treasury Securities.
• B)sell U.S.Treasury Securities.
• C)increase the discount rate.
• D)decrease the discount rate.

Understand how to determine the optimal number of units of land, labor, and capital to hire based on Marginal Revenue Product (MRP) and factor costs.

Analyze the conditions under which a firm is considered a perfect or imperfect competitor in the labor market.

Calculate the total wage bill for a given number of workers and wage rate.

Apply the concept of Marginal Physical Product (MPP) and its role in determining labor demand.