Typically, economists mean M1 when they refer to money
Indicate whether the statement is true or false
T
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In the specific factors model, the effects of trade on welfare overall are ________ and for fixed factors used to produce the imported good they are ________
A) positive; negative B) positive; positive C) negative; positive D) ambiguous; positive E) positive; ambiguous
If the Federal Reserve System wanted to tighten the money supply, the most powerful combination of actions would be to
a. raise reserve requirements, lower the discount rate, and buy government securities. b. raise reserve requirements, lower the discount rate, and sell securities. c. lower reserve requirements, raise the discount rate, and buy government securities. d. raise reserve requirement, raise the discount rate, and sell government securities.
A binding price ceiling causes a shortage in the market
a. True b. False Indicate whether the statement is true or false
The Fed makes an initial cash injection of $10,000 by buying a $10,000 Treasury Bond from Janis. Janis deposits the $10,000 in her checking account at Friendly Bank. Friendly Bank holds $1,000 in reserve and lends out $9,000 to Bruno, who deposits this $9,000 in his checking account at Last National Bank. What is the total money supply so far in this question?
a. $19,000 b. $10,000 c. $9,000 d. $1,000