In order to decrease the money supply, the Fed can
A. Raise the reserve requirement, increase the discount rate, or buy bonds.
B. Lower the reserve requirement, decrease the discount rate, or sell bonds.
C. Raise the reserve requirement, increase the discount rate, or sell bonds.
D. Lower the reserve requirement, increase the discount rate, or buy bonds.
Answer: C
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The law of demand concludes that a rise in the price of a golf ball ________ the quantity demanded and ________
A) increases; shifts the demand curve for golf balls rightward B) decreases; shifts the demand curve for golf balls leftward C) decreases; creates a movement up along the demand curve for golf balls D) increases; creates a movement down along the demand curve for golf balls
Pepsi is considering an expensive advertising campaign to steal market share from Coca-Cola. Why might both companies have a dominant strategy to advertise, even if advertising attracts few new customers to the cola drink industry?
If the marginal propensity to consume is 4/5 then what must the marginal propensity to save?
a. 2/5 b. 3/5 c. 8/10 d. 1/5
The price charged by a monopolist is socially inefficient because the price
A. is too low. B. puts the monopolist into a higher tax bracket. C. exceeds the true marginal cost of the resources used. D. is less than the opportunity cost of the resources used.