Which of the following will occur if the Fed buys $10 million of securities from the University National Bank?
A) The Fed will credit the University National Bank's deposit account with the Fed by $10 million.
B) The Fed will debit the University National Bank's deposit account with the Fed by $10 million.
C) The University National Bank has $10 million less in excess reserves.
D) The University National Bank has $10 million more in securities.
A) the fed will credit the University National bank's deposit account with the fed by $10 million
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
At any level of output
A. average total cost will exceed average variable cost by the amount of the average fixed cost. B. marginal cost will exceed average variable cost by the amount of the average fixed cost. C. average variable cost will exceed average total cost in the short run. D. average variable cost will exceed average fixed cost by the amount of the average total cost.
Inflation reduces the multiplier effect by reducing consumers' wealth and purchasing power
a. True b. False Indicate whether the statement is true or false
The marginal benefit Susie gets from purchasing a third pair of gloves is
a. the same as the total benefit she gets from purchasing three pairs of gloves. b. more than the marginal cost of purchasing the third pair of gloves. c. the total benefit she gets from purchasing three pairs of gloves minus the total benefit she gets from purchasing two pairs of gloves. d. the total benefit she gets from purchasing four pairs of gloves minus the total benefit she gets from purchasing three pairs of gloves.