The amount of money one would have to give to a consumer to offset the harm from a price increase is called
A) compensating variation.
B) structured settlement.
C) equivalent variation.
D) consumer surplus.
A
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If the Federal Reserve raises its target inflation rate, the monetary policy reaction function ________ and the aggregate demand curve ________.
A. shifts upward to the left; shifts to the right B. shifts downward to the right; shifts to the left C. shifts downward to the right; shifts to the right D. shifts upward to the left; shifts to the left
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
A goal of expansionary monetary policy is to:
A) decrease the rate of growth of real GDP. B) increase the rate of growth of real GDP. C) increase inflation. D) none of the above.
The required reserve ratio for a bank is set by:
a. Congress. b. the bank itself. c. the Treasury Department. d. the banking system. e. the Federal Reserve.