If the Fed buys government securities from depository institutions, the effect will be to
A. reduce loans and reduce the money supply.
B. reduce loans and increase the money supply.
C. increase loans and reduce the money supply.
D. increase loans and increase the money supply.
D. increase loans and increase the money supply.
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Suppose that the Federal Reserve enacts expansionary policy. Everything else held constant, this will cause the demand for U.S. assets to ________ and the U.S. dollar to ________
A) increase; appreciate B) decrease; appreciate C) increase; depreciate D) decrease; depreciate
Cindy's attitudes towards risk are summarized by the utility function U(w) = . Cindy has an initial wealth of $100. There is a 10% chance that her home will sustain flood damage next year costing her $40 in repairs
What is the most she will pay to for a full $40 of flood insurance?
To allow a public utility (which is a natural monopoly) to earn only a normal profit, the government should
a. do all of the following b. set price equal to average cost c. equate marginal cost and average cost d. set marginal cost equal to marginal revenue e. set price equal to marginal cost
Which curve in the market for foreign-currency exchange shifts and which direction does it shift if the government budget deficit increases? Explain why an increase in the budget deficit shifts this curve