Suppose an individual sells $500 worth of securities to the Fed and puts the proceeds of this sale under his mattress. Then,
A) the money supply will be unaffected.
B) the money supply will rise by $500.
C) the supply of high-powered money will rise by $500 but nothing will happen to the money supply.
D) demand deposits will rise by some multiple of $500, depending on the bank reserve-holding ratio.
B
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The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10. What is the marginal utility per dollar from CDs when the sixth CD is purchased?
A) 40 units B) 30 units C) 15 units D) 5 units
Women earn less on average than men. Which of the following would be the logical conclusion?
a. Women must be the victim of employment discrimination. b. Women must be less productive. c. Men must be more highly motivated and materialistic. d. Without consideration of preferences and productivity factors, differences in unadjusted mean earnings do not necessarily reflect employment discrimination.
Assume that Switzerland and Britain have floating exchange rates. All else held constant, if a tight money policy raises interest rates in Britain as compared to Switzerland, then ________.
A. the Swiss franc will depreciate B. the pound will depreciate C. the Swiss franc will appreciate D. gold bullion will flow into Switzerland
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary