How does the Fed increase the level of reserves in the banking system?
A. by buying bonds
B. by raising interest rates
C. by selling bonds
D. by lowering interest rates
Answer: A
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Suppose the price level this year is 150 and the price level last year was 125. The inflation rate between last year and this year was
A) 20 percent. B) 2 percent. C) 16.6 percent. D) 1.6 percent.
What are some disadvantages of debt cards?
a. Debit cards do not immediately draw on your bank account. b. More difficult to dispute a bill before payment. c. Cannot stop payment after you have paid for the item d. Both B and C are disadvantages of debit cards.
Suppose that a monopolist calculates that at present output and sales, marginal cost is $1.00 and marginal revenue is $2.00. She could maximize profits by:
A. decreasing output and leaving prices unchanged. B. decreasing price and increasing output. C. increasing price and decreasing output. D. decreasing price and leaving output unchanged.
If an event is likely to occur, which probability is a reasonable estimate?
A) 0.32 B) 0.79 C) 1 D) Not enough information to determine.