If the Fed purchases $1 million in securities from the nonbank public, the monetary base will rise by $1 million
A) if the public holds the proceeds as currency.
B) if the public deposits the proceeds as checkable deposits.
C) if the public deposits the proceeds with the Treasury in a monetary base account.
D) whether the public holds the proceeds as currency or deposits them as checkable deposits.
D
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The city of London imposes congestion fees on cars and trucks that drive in central London. The charge is higher Monday through Friday than on weekends. This example of
A. peak pricing. B. positive externalities. C. profit maximizing. D. British socialism.
If a person earns an 8 percent nominal rate of interest on his savings account in a year when inflation is 9 percent, the person's real rate of interest is
a. -1 percent. b. 1 percent. c. 8 percent. d. 9 percent.
Use supply and demand analysis to explain what is most likely to happen to the price and quantity of corn when there is an increase in the demand for ethanol, which is produced using corn. What other effects would such a change in the corn market have
on the price of beef, the price of farmland, and the price of corn syrup? Please provide the best answer for the statement.
Assuming no change in the effective tax rate on capital, an increase in the government budget deficit will reduce the current account deficit if and only if the increase in the budget deficit
A. increases desired national investment. B. increases desired national saving. C. reduces desired national saving. D. reduces desired national investment.