What does the equilibrium of supply and demand in a market do?
a) It maximizes the prices at which producers are willing to sell.
b) It minimizes the prices that consumers are willing to pay.
c) It produces both an efficient and equitable market outcome.
d) It maximizes the total benefits received by buyers and sellers.
Ans: d) It maximizes the total benefits received by buyers and sellers.
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The Federal Reserve System controls the money supply by ________.
A. making loans to private borrowers B. changing the amount of reserves the banking system has available C. making loans to the Treasury D. issuing currency
Given the consumption function C = $100 billion + 0.75 ($300 billion), autonomous consumption is equal to:
a. $100 billion. b. $225 billion. c. $300 billion. d. $325 billion. e. $400 billion.
In graph a, why does q1 move to q2?
a. When firms leave the market, the demand increases for the firms remaining, causing quantity to increase for each firm.
b. When firms leave the market, the price decreases for the firms remaining, causing quantity to increase for each firm.
c. When firms leave the market, the demand decreases for the firms remaining, causing quantity to decrease for each frim.
d. When firms leave the market, the price increases for the firms remaining, causing quantity to decrease for each firm.
If you have $2 million in a CD at a commercial bank that is a member of the FDIC, how much of your funds are uninsured?
A) $0 B) $1 million C) $1.75 million D) $2 million