A new cattle feed has been found to increase the amount of milk each cow produces. Which of these is a likely impact in the market for milk, if this cattle feed is used by most of the dairies?
a. A rightward shift of the supply curve for milk
b. An increase in the demand for milk
c. A decrease in the quantity demanded of milk
d. A leftward shift of the supply curve for milk e. An increase in the price of milk
a. A rightward shift of the supply curve for milk
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Which of the following usually has the highest yield at a given point in time?
A) Corporate bonds B) Municipal bonds C) Commercial paper D) U.S. Treasury bonds
The main effect of a decrease in the stock of capital is a(n):
a. rightward shift of the short-run aggregate supply curve. b. rightward shift of the aggregate demand curve c. leftward shift of the long-run aggregate supply curve. d. leftward shift of the aggregate demand curve. e. increase in the price and output levels.
When crowding out occurs, higher government spending results in higher interest rates, which in turn results in:
a. higher inflation. b. less consumption and investment. c. a larger debt ceiling. d. more tax revenues.
When the Fed purchases government securities from a commercial bank, the bank: a. automatically becomes poorer
b. loses equity in the Fed. c. receives reserves that can be used to make additional loans. d. loses its ability to make loans.