Which of the following happens if the Fed buys bonds from a private bank?
A) The Fed's total liabilities remain unaffected.
B) The private bank's total assets remain unchanged.
C) The private bank's composition of assets remain unchanged.
D) The Fed's total assets decrease.
B
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Consumer surplus in a market for a product would be equal to ________ if the market price was zero
A) zero B) the area under the demand curve C) the area between the supply curve and the demand curve D) the area above the supply curve
The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for tea after severe weather destroys a large portion of the coffee crop?
A) Graph A B) Graph B C) Graph C D) Graph D
If the average annual growth rate of a developing country is 7.2 percent, real GDP will double in _____
a. 2 years b. 7.2 years c. 14.4 years d. 10 years e. 15 years
Suppose that after disposable income increases by $500 billion, consumption expenditures increase by $450 billion. Therefore, the marginal propensity to consume would be
a. 1.11 b. 9.00 c. 0.09 d. 0.90 e. 0.82