If the Fed sells securities worth $10 million to a commercial bank, the Fed's balance sheet will show
A) an increase in securities held of $10 million and an increase in bank reserves of $10 million.
B) an increase in securities held of $10 million and a decrease in bank reserves of $10 million.
C) a decrease in securities held of $10 million and an increase in bank reserves of $10 million.
D) a decrease in securities held of $10 million and a decrease in bank reserves of $10 million.
D
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Refer to the scenario above. If both economies have identical depreciation rate, then:
A) economy A's steady state equilibrium will lie to the left and above economy B's steady state equilibrium. B) economy A's steady state equilibrium will lie to the right and below economy B's steady state equilibrium. C) economy A's steady state equilibrium will lie to the left and below economy B's steady state equilibrium. D) economy A's steady state equilibrium will lie to the right and above economy B's steady state equilibrium.
A positive supply shock causes a leftward shift in the SRAS curve
a. True b. False Indicate whether the statement is true or false
Which of the following would generate positive externalities?
A. Flu vaccinations. B. Farmers' use of pesticides. C. Cigarette smoking in elevators. D. Litter left at the beach.
Suppose many businesses want to increase their stock of capital goods and decide to borrow funds to do it. Which would be the likely result of this event?
A. Interest rates would increase B. Interest rates would decrease C. The equilibrium quantity of loanable funds would decrease D. The equilibrium quantity of loanable funds would remain unchanged