When the Fed lowers the federal funds rate, it can lead to
A) the Fed selling government securities.
B) an increase in lending by banks.
C) a decrease in demand deposits.
D) a decrease in the quantity of money.
B
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At the current interest rate, the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded. Therefore
A) equilibrium will not be achieved until something shifts the supply of loanable funds curve rightward. B) the real interest rate is above the equilibrium level. C) the real interest rate is below the equilibrium level. D) equilibrium will not be achieved until something shifts the supply of loanable funds curve leftward. E) equilibrium will not be achieved until something shifts the demand for loanable funds curve rightward.
An isocost line represents:
A) all the combinations of inputs to a production process that result in the same total costs of production. B) all the combinations of inputs that result in the same amount of output. C) all of the combinations of two inputs for which the amount of money spent on each of the inputs is equal. D) all of the levels of output that result in the same total cost.
Regulatory capture exists when
A. regulated firms form special interests and influence politicians who appoint regulators through campaign donations. B. regulated firms pay for favorable public media campaigns. C. the federal government successfully deregulates an industry. D. two or more firms merge to gain a majority market share.
Angela is currently playing five games of pool and bowling three games. At this level of consumption, her marginal utility from a game of pool is 10 and her marginal utility from bowling a game is 6. If both pool and bowling cost $1 a game, Angela should:
A. bowl more and play pool less. B. bowl less and play pool more. C. just go home. D. bowl only.