The figure above shows the market for milk in Cowland. If a subsidy paid to producers of $1 per gallon of milk is introduced, how many gallons are sold per year?
A) 200 million
B) 400 million
C) 300 million
D) more than 300 million but less than 400 million
D
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Money held for precautionary reasons is included in the demand for money:
A. partly as transactions demand and partly as portfolio demand. B. as a third, separate category called the precautionary demand for money. C. as part of portfolio demand. D. as part of transactions demand.
In modern microeconomic theory, utility functions summarize:
A. cardinal information about preferences. B. ordinal information about preferences. C. absolute information about preferences. D. both cardinal and ordinal information about preferences.
What is the newest money supply tool available to the Fed?
a. the reserve requirement ratio b. the discount rate c. the interest rate on reserves held at the Fed d. open market operations
Comparing the European and the U.S. central bank systems, the National Central Banks that make up part of the European System of Central Banks resembles:
A. the U.S. Treasury. B. the regional Federal Reserve Banks. C. the FOMC. D. the Board of Governors.