When the Fed purchases securities from a bank, it __________ reserves and ____________ the money supply
A) decreases; decreases
B) increases; increases
C) decreases; increases
D) increases; decreases
E) has no impact on; has no impact on
B
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Suppose new research shows that soy milk and other products derived from soybeans provide more health benefits than previously thought. At the same time, drought conditions result in extensive damage to the soybean crop
What will be the combined impact of these two factors on the equilibrium price and quantity of soybeans? A) Price will decrease, but the effect on quantity is indeterminate. B) Price will increase, but the effect on quantity is indeterminate. C) Quantity will decrease, but the effect on price is indeterminate. D) Quantity will increase, but the effect on price is indeterminate.
The addition of imports reduces the value of the multiplier
a. True b. False Indicate whether the statement is true or false
Long-run decisions are:
A. constrained because all inputs are fixed. B. constrained because all inputs are variable. C. constrained because some inputs are fixed and others are variable. D. unconstrained because all inputs are variable.
If the GDP deflator is greater than 100, then
A. nominal GDP equals real GDP. B. nominal GDP is greater than real GDP. C. prices decreased by more than half between the current and the base years. D. nominal GDP is lower than real GDP.