When the Fed increases or decreases the money supply, these actions are called
a. discounting
b. money printing
c. moral suasion
d. open market operations
e. interest payments
D
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Even if the City Council fixed high minimum taxi fares and gave licenses to operate to only a few cab owners, license holders would not earn large profits from operating taxis in the city because
A) people would drive their own cars. B) people would substitute buses for taxis. C) taxis are not a necessity of life. D) the cost of owning a license would eat up the potential profits from operating a taxi. E) the demand would fall as taxi fares rose.
Which of the following is not one of the basic economic questions that all economies must answer?
What will be an ideal response?
The government transfer program makes the distribution of income more equal.
Answer the following statement true (T) or false (F)
If the economy is in the vertical portion of the aggregate supply curve, an increase in the money supply in the long run will
A. Decrease the output level. B. Increase the price level. C. Increase the output level. D. Decrease the price level.