How can the Federal Reserve actually increase the money supply?

A) by delaying transfer of money among banks
B) by purchasing more government bonds in the open market
C) by doubling the reserve requirement
D) by raising the discount rate


B

Economics

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Greatland and Superland both produce 5 million watches in a year. The opportunity cost of producing one watch is 2 shirts in Greatland, and the opportunity cost of producing one watch is 3 shirts in Superland

Which of the following statements is true? A) Superland has a comparative advantage in producing watches. B) Superland has an absolute advantage in producing watches. C) Greatland has a comparative advantage in producing watches. D) Greatland has an absolute advantage in producing watches. Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples in a year or 500 pounds of oranges. Each farmer in Zeta can grow 400 pounds of apples or 1,200 pounds of oranges in a year.

Economics

The two most important categories of assets on the Fed's balance sheet are ________ and ________ because they earn interest

A) discount loans; coins B) securities; discount loans C) gold; coins D) cash items in the process of collection; SDR certificate accounts

Economics

Figure 7-2 In Figure 7-2, average cost at 500 units of output equals

A. 4,000. B. 200. C. 8. D. 6.

Economics

Your local grocery store offers a coupon that reduces the price of milk during the coming week. The regular retail price of milk in the store is $3.00 per gallon, and the coupon price is $2.00 per gallon for the next week

If the store maximizes profits and the price elasticity of demand for milk is -2 for coupon users, what is the price elasticity of demand for non-users? A) -0.67 B) -1.0 C) -1.5 D) We do not have enough information to answer the question.

Economics