In 2010 the U.S. government was running a large deficit. Some were concerned that pressures might be put on the Federal Reserve to purchase government bonds to help the government finance this deficit. If the Fed were to buy government bonds to help the government finance its expenditures, then
a. the price level would fall, so the value of money would fall.
b. the price level would fall, so the value of money would rise.
c. the price level would rise, so the value of money would fall.
d. the price level would rise, so the value of money would rise.
c
You might also like to view...
How does a laissez-faire economy decide which consumer gets each of the goods that has been produced?
What is the discount rate?
a. the amount of cash banks must keep on hand at any given time b. the discount that the fed provides per $100,000 of borrowed money c. the interest rate the Fed pays on reserves stored in the federal funds market d. the interest rate charged on reserves borrowed from the Fed’s discount window
A market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.
If the market price of grills is $350, given the scenario described, total consumer surplus would be: A. $750. B. $400. C. $50. D. $870.
Population density varies little between the fifty states
a. True b. False Indicate whether the statement is true or false