If the account manager finds that the current level of bank reserves is greater than the desired level indicated in the most recent directive from the FOMC, he will
A) order banks to reduce their reserves.
B) order banks to raise their interest rates in an attempt to get them to loan out more of their reserves.
C) conduct an open market purchase.
D) conduct an open market sale.
D
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The clear winners from the quota are the ________, and the losers are the______. 
A. domestic producers; domestic consumers B. domestic consumers; domestic producers C. government; domestic consumers D. importers; domestic producers
An increase in interest rates will generally lead to a(n) ____ in present investment and a(n) ____ in future income and production
a. decrease, decrease b. decrease, increase c. increase, decrease d. increase, increase
If the price elasticity of supply is 1.2, and price increased by 5%, quantity supplied would
a. increase by 4.2%. b. increase by 6%. c. decrease by 4.2%. d. decrease by 6%.
A monopoly is allocatively efficient compared to perfect competition
Indicate whether the statement is true or false