Who gains in a voluntary trade?
What will be an ideal response?
both the buyer and the seller
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National income is defined as gross national product minus
a. depreciation and net taxes. b. national income. c. depreciation. d. personal disposable income.
The above figure shows the market for steel ingots. What is the total surplus under social optimum?
A) $2500 B) $5000 C) $6500 D) Not enough information.
The discount rate is the interest rate:
a. commercial banks charge their low-risk customers for a loan. b. savings and loan associations pay for using savings deposit funds. c. the U.S. Treasury pays individuals who buy Treasury bonds in denominations of $10,000 or more. d. the Federal Reserve charges banking institutions for borrowing its funds.
When the Fed sells government securities, the banks':
A. reserve requirements will increase and lending will contract, causing a decrease in the money supply. B. reserves will increase and lending will expand, causing an increase in the money supply. C. reserves/deposit ratio will increase and lending will expand, causing an increase in the money supply. D. reserves will decrease and lending will contract, causing a decrease in the money supply.