When the Fed buys government securities, banks' reserves ________, the quantity of money ________, and the federal funds rate ________
A) decrease; increases; falls
B) increase; increases; falls
C) increase; decreases; rises
D) decrease; decreases; rises
E) increase; increases; rises
B
You might also like to view...
Which of the following would an economist classify as physical capital?
a. 100 shares of IBM stock b. a $50 bill c. a credit card d. a lawyer's computer
The perfectly competitive firm has no influence over price because
A. its output is so insignificant relative to the market as a whole. B. antitrust laws constrain perfectly competitive firms. C. consumers establish the prices of products. D. it doesn’t know its demand curve.
When you go to a baseball game your ticket specifies your seat and section of the stadium where the seat is located. Assuming the seats all cost nearly the same to install and maintain, what pricing strategy would you expect the team officials to adopt if a full stadium with a maximum of satisfied customers and at least normal profit is the goal?
A. Price all seats at cost, which includes normal profit. B. Price above cost for seats with the best view and below cost for less desirable seats so the gain from those willing to pay more for the best seats offsets the loss on the cheap seats. C. Price all seats above cost so if there are empty seats, at least total costs can hopefully be covered. D. Price above cost for the seats with the best view and price at cost for the rest even if this means the stadium is not full. At least total cost with normal profit will be achieved.
An import quota is a limit on the
A. amount of a product that may be imported. B. number of foreign workers allowed to work in a country. C. number of container ships allowed to enter the territorial waters of the United States. D. value of low-priced foreign goods that are allowed to be imported into the United States.