If the Fed makes a discount loan of $2 million to a commercial bank, the Fed's balance sheet will show
A) an increase in discount loans of $2 million and an increase in bank reserves of $2 million.
B) an increase in discount loans of $2 million and a decrease in bank reserves of $2 million.
C) a decrease in discount loans of $2 million and an increase in bank reserves of $2 million.
D) a decrease in discount loans of $2 million and a decrease in bank reserves of $2 million.
A
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If a nation has no absolute advantage, then it
A) cannot gain from trade. B) still gains from trade. C) can only gain from trade if it raises its productivity levels. D) can only gain from trade if it reduces wages paid. E) can only gain from trade if it produces outside its production possibilities curve.
As of the end of 1994 which of the countries in our survey had the smallest proportion of stock held by foreigners?
A) The United Kingdom B) The United States C) Japan D) Germany
Which of the following is a merit good?
A. Health care. B. Electricity. C. Automobiles. D. Local telephone service.
If the calculated price elasticity of demand between two points is -1.5, demand is
A) inelastic. B) elastic. C) unresponsive to price. D) unit-elastic.