Which of the following combinations would unambiguously increase the supply of money?
a. The Fed pays a higher interest rate on bank reserves and increases the required reserve ratio
b. The Fed conducts an open market purchase of government securities and raises the discount rate.
c. The Fed pays a higher interest rate on bank reserves and conducts an open market purchase of government securities.
d. All of the above would produce conflicting effects on the supply of money
c
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Fred spends all of his income on two goods: DVDs and downloaded music. If Fred's marginal utility per dollar from DVDs is greater than his marginal utility per dollar from downloaded music, Fred can ________ his total utility by buying ________
A) maximize; more DVDs and more downloaded music B) increase; more downloaded music and fewer DVDs C) increase; more DVDs and less downloaded music D) maximize; fewer DVDs and less downloaded music
Production under increasing opportunity costs can result from the two industries using factors of production in different combinations
Indicate whether the statement is true or false
If the price level was 100 in 2014 and 102 in 2015, the inflation rate was
A) 102%. B) 20%. C) 2%. D) 0.2%.
The supply curve for funds
a. is generally positively sloped. b. depends upon people's savings plans. c. is a function of the interest rate. d. All of the above are correct.