When the Federal Reserve sells assets from its portfolio to the public with the intent of changing the money supply,
a. those assets are government bonds and the Fed's reason for selling them is to increase the money supply.
b. those assets are government bonds and the Fed's reason for selling them is to decrease the money supply.
c. those assets are items that are included in M2 and the Fed's reason for selling them is to increase the money supply.
d. those assets are items that are included in M2 and the Fed's reason for selling them is to decrease the money supply.
b
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If a person withdraws $500 from his/her savings account and puts it in his/her checking account, then M1 will ________ and M2 will ________
A) not change; not change B) not change; increase C) increase; not change D) not change; decrease E) increase; decrease
A firm sells in a competitive market in which price is $10. Its marginal cost is 2 + 0.5Q. Determine the profit-maximizing level of output.
What will be an ideal response?
Market signaling
A) is a way of conveying information to other parties in a transaction where asymmetric information exists. B) represents a dominant strategy in a multi-player game. C) results in an optimum solution to a beach kiosk scenario. D) None of the above
The capture theory of regulation, espoused by George Stigler, asserts that
a. consumers "capture" regulatory agencies so that regulation favors consumers b. producers "capture" regulatory agencies so that regulation favors producers c. regulators "capture" producers and limit their market power d. consumers "capture" some consumer surplus lost to monopoly e. consumers and producers work together to "capture" regulatory agencies in order to achieve more desirable regulation