Suppose the Fed sells $100 million of U.S. securities to the public. If the reserve requirement is 20 percent, the currency holdings of the public are unchanged, and banks have zero excess reserves both before and after the transaction, the total impact on the money supply will be a
a. $100 million decrease.
b. $500 million increase.
c. $500 million decrease.
d. $100 million increase.
C
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The table above shows the payoff matrix offered to two suspected criminals, Bonnie and Clyde. The payoffs are the years they will spend in prison. The suspected criminals are not allowed to communicate
Given the information in the payoff matrix, the Nash equilibrium is that Bonnie ________ and Clyde ________. A) confesses; denies B) confesses; confesses C) denies; denies D) denies; confesses E) denies; either confess or denies, either outcome is consistent with the Nash equilibrium.
When the quantity of a good bought and sold is below the market equilibrium quantity, the loss of total surplus that results is called:
A. deadweight loss. B. producer surplus. C. consumer surplus. D. total surplus.
The portfolio demand for money reflects:
A. the money we hold for our everyday transactions. B. the money we hold for our everyday transactions and the money we hold to purchase stocks and bonds and other financial securities. C. the portion of wealth people desire to hold in the form of money. D. the money we hold to purchase stocks and bonds and other financial securities.
The relationship between the level of prices and total quantity of goods and services producers are willing to supply is represented by the:
A. aggregate demand curve. B. aggregate supply curve. C. sticky price curve. D. GDP multiplier.