Author Question: Interest rates will increase if the Fed conducts an open market purchase. Indicate whether the ... (Read 101 times)

stevenposner · **on:** Jun 29, 2018

Interest rates will increase if the Fed conducts an open market purchase.

Indicate whether the statement is true or false

Question 2

How are the roles of the household different in the goods market and in the factor markets?

What will be an ideal response?

iman · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

FALSE

Answer to Question 2

In the goods market, households are buyers. They purchase the goods and services produced by the firms. In exchange for the goods and services, households pay firms. In the factor market, households are sellers. They provide the services from land, labor, capital, and entrepreneurship to the firms. In the factor markets, households receive payments from firms.