In open market operations, when the Fed __________ securities, bank reserves __________
A) buys; contract
B) buys; expand
C) sells; expand
D) None of the above.
B
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Advance-purchase discounts offered by airlines are an example of
a. Direct price discrimination b. Indirect price discrimination c. All of the above d. None of the above
A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a store building that he owns and currently rents to his brother for $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What are his explicit costs?
a. $26,000. b. $66,000. c. $78,000. d. $52,000. e. $72,000.
In Figure 32.1, at the supported price-quantity combination where production is unlimited, and government buys the excess, the value to consumers is 
A. 0P*CQ*. B. 0HCQ*. C. 0ABQD. D. 0PfloorBQD.