Which of the Following Have the Same Impact on the Fed's

question 105

Multiple Choice

Which of the following have the same impact on the Fed's balance sheet?

• A) An open market purchase and an increase in loans by the Fed to banks
• B) An open market sale and an increase in foreign exchange reserves
• C) An open market purchase and a decrease in foreign exchange reserves
• D) An increase in loans by the Fed to banks and a decrease in foreign exchange reserves

Differentiate between positive and normative statements.

Understand the construction and implications of economic models and the concept of economic policy.

Explain the role of scarce resources in economics and how they relate to the production possibilities curve.

Identify the importance of investment in the accumulation of capital goods.

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Definitions:

Small Businesses

Companies with a small number of employees and relatively low volume of sales, typically privately owned.

Larger Firms

Businesses or companies that have a significant scale in terms of operations, revenue, and workforce size, often with a broad market presence.

Business Decisions

Choices or judgments that are made in the course of managing a business, considering various factors to achieve organizational goals.