Open market purchases of government securities
A) are designed to increase trading on the stock exchange.
B) generally decrease the money supply.
C) always decrease the money supply.
D) cause bank reserves to increase.
E) all of the above
D
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Another way of saying "ceteris paribus" is:
A. Other things equal B. In general C. In reality D. Because of this
Juliana, Gabrielle, and Marcela want to start a business they are the only owners and the company does not issue stock. The type of business they want to start is a
A) sole proprietorship. B) partnership. C) corporation. D) Any of the above could be correct.
(Advanced analysis) The equation C = 35 + .75Y, where C is consumption and Y is disposable income, shows that:
A. households will consume three-fourths of whatever level of disposable income they receive. B. households will consume $35 if their disposable income is zero and will consume three- fourths of any increase in disposable income they receive. C. there is an inverse relationship between disposable income and consumption. D. households will save $35 if their disposable income is zero and will consume three-fourths of any increase in disposable income they receive.
The major problem with using strawberries as money is the problem of
a. homogeneity b. divisibility c. portability d. durability e. scarcity or abundance