When the Fed buys government bonds on the open market from commercial banks, the

a. assets of these banks fall
b. assets of the Fed falls
c. assets of the banks rise
d. liabilities of the bank rise
e. liabilities of the bank fall


C

Economics

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A key assumption of Ricardo's economic rent concept was that

A) all land is equally productive. B) land is too differentiated to be able to measure. C) only land in large cities matters. D) land is always cheap and needs development.

Economics

Studies show that the supply curve for bananas has shifted. All of the following could be possible explanations for the shift, except one. Which is the exception?

a. The price of land for growing bananas has risen. b. Weather conditions in banana-growing countries have worsened. c. The price of apples has fallen. d. The price of bananas has risen. e. The salaries paid to banana growers has risen.

Economics

Recall the Application about price controls on candy bars during World War II to answer the following question(s).Recall the Application. In a comparison of weights of candy bars in 1943 and 1939, a Consumer Reports study stated that the change in size of candy bars is an example of:

A. "hidden price increases." B. "an illegal price ceiling." C. "deadweight loss." D. "negative producer surplus."

Economics

Marginal revenue is equal to price for a perfectly competitive firm because:

A. total revenue increases by the price of the good when an additional unit is sold. B. total revenue increases by less than the price of the good when an additional unit is sold. C. firms need to lower price to increase the quantity sold. D. firms can increase price and still increase the quantity sold.

Economics