If the FOMC orders the sale of T-bills in the open market, then bank reserves are
a. decreased, but the money supply will remain unchanged.
b. decreased, and a multiple contraction of the money supply will occur.
c. increased, but the money supply will remain unchanged.
d. increased, and a multiple expansion of the money supply will occur.
b
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Use the following table to answer the next question.Total ProductTotal Fixed CostTotal Variable Cost0$150$0115050215075315010541501455150200615027071503608150475915062010150800Based on the cost data given, which of the following price-quantity tables correctly represents the firm's short-run supply schedule?(1)(2)(3)(4)PQsPQsPQsPQs$201$200$200$203302300300304453454450455604605600606755756755757956957956958120712081207120915081509150815010
A. Table (1) B. Table (2) C. Table (3) D. Table (4)
High interest rates contribute to a lower federal budget deficit.
A. True B. False C. Uncertain
Endogenous variables
A) are correlated with the error term. B) always appear on the LHS of regression functions. C) cannot be regressors. D) are uncorrelated with the error term.
For firms that sell one product in a perfectly competitive market, average revenue is:
A. calculated by total output divided by total revenue. B. equal to marginal cost. C. equal to the market price. D. greater than market price.