If the Fed buys $150 billion of U.S. bonds in the open market and the reserve requirement is 5 percent, M1 will eventually
A. Decrease by $3,000 billion.
B. Increase by $3,000 billion.
C. Increase by $300 billion.
D. Decrease by $300 billion.
Answer: B
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In the foreign exchange market, which of the following shifts the demand curve for dollars rightward?
A) The current exchange rate rises. B) The expected future exchange rate rises. C) The current exchange rate falls. D) The expected future exchange rate falls. E) None of the above answers is correct.
Jon spends all of his income on energy drinks (E) regardless of the price and his income. Derive Jon's demand equation for energy drinks, E*(p,Y)
What will be an ideal response?
Which of the following would be most likely to cause the production possibilities curve for computers and education to shift outward?
a. A choice of more computers and less education. b. A choice of more education and less computers. c. A reduction in the labor force. d. An increase in the quantity of resources.
The accompanying graph depicts demand.
At point D, demand is:
A. price elastic. B. perfectly price elastic. C. price inelastic. D. unit elastic.