A decrease in the quantity of reserves held by commercial banks could be the result of
A) a decision by U.S. households to hold less currency.
B) the sale of government securities by the Federal Reserve.
C) a decrease in the government's budget deficit.
D) an increase in the exchange rate.
B
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Use the following supply and demand graph for product X to answer the question below. 
If there are positive externalities from the consumption of product X, then the socially optimal demand curve would be
A. an upward-sloping line. B. to the left of line D on the graph. C. at the position of line D on the graph. D. to the right of line D on the graph.
If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by
A. reducing government purchases by $60 billion. B. reducing government purchases by $12 billion. C. increasing taxes by $15 billion. D. increasing taxes by $20 billion.
As the ratio of price to marginal cost decreases, the Lerner index
A) stays the same. B) increases. C) decreases. D) can increase or decrease depending upon the shape of the demand curve.
There is considerable evidence to support the assertion that legislated input combinations have reduced the costs of production in affected industries
Indicate whether the statement is true or false