Holding everything else constant, as the price of natural gas rises, selling natural gas becomes
a. more profitable, and the quantity supplied falls
b. less profitable, and the quantity supplied rises
c. less profitable, and the quantity supplied falls
d. more profitable, and the quantity supplied rises
e. more profitable, but the quantity supplied does not change
D
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In 2008, the Fed created a new policy tool called
A) federal funds zero-rate, which required the Fed to lower the rate to near zero percent. B) open market operations, which required the Fed to buy securities from only the federal government. C) quantitative easing, which required the Fed to pay interest on required reserves. D) interest rate reductions, which allowed the Fed to lower interest rates paid to banks. E) quantitative easing, which allowed the Fed to buy private securities as well as government securities.
The transmission mechanism is the effect of changes in monetary policy on prices, real GDP, and employment
a. True b. False Indicate whether the statement is true or false
An increase in the price of cotton will increase the equilibrium price and decrease the equilibrium quantity in the market for cotton t-shirts
a. True b. False Indicate whether the statement is true or false
When the price of one good increases, the associated income effect is represented by a move from one indifference curve to a:
A. higher indifference curve since real income is now higher. B. lower indifference curve since real income is now higher. C. higher indifference curve since real income is now lower. D. lower indifference curve since real income is now lower.