Money is created when
A. Congress enacts legislation providing for increased bank reserves.
B. depository institutions make loans.
C. the Federal Reserve Board of Governors increases the discount rate.
D. Congress reduces taxes.
B. depository institutions make loans.
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Suppose demand can be described with the equation Q = 900?5P and supply with the equation Q = 100 + 5P. a. Determine the equilibrium price and quantity. b. Determine the surplus or shortage if the price were $100. ?
What will be an ideal response?
A leftward shift of the demand curve will lead to a(n)
A) decrease in equilibrium price. B) excess supply at the old equilibrium price. C) decrease in quantity supplied. D) All of the above.
Which of the following activities would be calculated as part of GDP accounts?
A. Drug trafficking. B. Money laundry. C. Prostitution. D. Purchasing plastic surgery.
Which of the following is a characteristic of perfect competition?
A) easy entry and exit B) few firms C) differentiated products D) none of the above