The sale of Treasury securities by the Federal Reserve will, in general
A) not change the money supply.
B) not change the quantity of reserves held by banks.
C) increase the quantity of reserves held by banks.
D) decrease the quantity of reserves held by banks.
Answer: D
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In the table above, the marginal product of the third unit of labor is ________ units of output
A) 3 B) 4 C) 12 D) 16
If Big City Cameras advertises a 90 day low-price guarantee that will refund any of its customers the difference between the price they paid for a camera and a lower price offered by Big City Cameras for the same camera, this is an example of ________.
A) a meet-or-release clause B) a meet-the-competition clause C) price visibility D) a most-favored-customer clause
When disposable income is 2000, how much is consumption?
With consumption expenditure on the vertical axis and disposable income on the horizontal axis, the consumption function intersects the 45 degree line at $8 trillion. This result indicates that
a) autonomous consumption spending is $8 trillion b) consumption spending is $8 trillion when disposable income is $8 trillion c) consumption spending is less than $8 trillion because taxes must be paid d) consumption spending is more than $8 trillion because taxes have been paid