Which of the following is NOT a reason the Fed alters the rate of growth of the money supply?
A) to influence aggregate demand B) to influence the amount of consumption
C) to influence the amount of investment D) to shift the demand for money curve
D
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Suppose one of baseball's most controversial records - the Bonds' career home run record - were on the line. Tickets to the games leading up to breaking of the record might command three times the face-value price for tickets. Economists would suggest that a scalping market would appear and it
A. cause the price to fall back to the face value. B. cause the price to fall below the face value. C. would make all ticket holders and potential buys worse off. D. would make all ticket holders and potential buys better off (or at least no worse off).
How do you calculate personal income from national income?
What will be an ideal response?
Given the production function and total cost function shown in Chapter 4, as production increases, average variable costs
A. decrease for a while and then increase. B. decrease constantly. C. increase constantly. D. increase for a while and then decrease.
Assume the required reserve ratio is 16.67 percent and that the commercial banking system has $110 million in excess reserves. The maximum amount of new money which the banking system could create is about:
A. $110 million B. $330 million C. $660 million D. $1,353 million