When a person's income doubles, her consumption of each good will double in order for her to stay in consumer equilibrium
a. True
b. False
Indicate whether the statement is true or false
False
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The most powerful individual in the Federal Reserve is the Chairman of the Board of Governors
Indicate whether the statement is true or false
If total Fed assets __________, then reserves have to __________, everything else being equal
A) fall; rise B) rise; fall C) fall; fall D) None of the above.
Suppose the required reserve ratio is 10%, excess-to-deposit ratio is 10%, and the currency-to-deposit ratio is 20%. If the Fed buys $50 million worth of securities, what will happen to the money supply?
What will be an ideal response?
If a consumer purchases only two goods (x and y) and the demand for x is elastic, then a rise in the price of x:
a. will cause total spending on good y to rise. b. will cause total spending on good y to fall. c. will cause total spending on good y to remain unchanged. d. will have an indeterminate effect on total spending on good y.