When the Fed purchases $1000 worth of government bonds from the public, the U.S. money supply eventually increases by
a. more than $1000.
b. exactly $1000.
c. less than $1000.
d. None of the above are correct.
a
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Refer to the scenario above. Plutoland's current account would show a balance of ________
A) $14 billion B) -$6 billion C) -$10 billion D) $4 billion
The difference between the lowest price a firm would have been willing to accept and the price it actually receives from the sale of a product is called
A) marginal revenue. B) price differential. C) profit. D) producer surplus.
Experiments:
A. make it easier to determine whether people's choices are consistent with standard economic theory, but can make it harder to establish causality. B. often make it easier to establish causality, but can make it harder to determine whether people's choices are consistent with standard economic theory. C. make it easier both to establish causality and to determine whether people's choices are consistent with standard economic theory. D. make it harder both to establish causality and to determine whether people's choices are consistent with standard economic theory.
Define the law of demand and explain how this relates to typical human behavior.
What will be an ideal response?