If the Fed sells U.S. government securities,

A) the U.S. Treasury loses some revenue.
B) the U.S. Treasury gains some revenue.
C) banks' reserves increase.
D) the federal funds rate rises.
E) None of the above answers is correct.


D

Economics

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The problem of asymmetric information that brings about a general decline in product quality in an industry is

A) a market failure. B) the result of government regulation. C) creative response. D) the lemons problem.

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Division of _______ is the way a good or service that is produced is divided into a number of tasks that are performed by different workers, instead of all the tasks being done by the same person.

a. resources b. labor c. money d. tasks

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If butter and margarine are substitute goods, an increase in the price of butter is most likely to:?

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Matt has decided to purchase his textbooks for the semester. His options are to purchase the books online with next day delivery at a cost of $175, or to drive to campus tomorrow to buy the books at the university bookstore at a cost of $170. Last week he drove to campus to buy a concert ticket because they offered 25 percent off the regular price of $16. The benefit to Matt of driving to campus to buy the concert ticket last week was:

A. $9 B. $4 C. $16 D. $2

Economics