The sale of government securities by the Fed will cause
a. a decrease in both the monetary base and the money supply.
b. an increase in both the monetary base and the money supply.
c. an increase in the monetary base but no change in the money supply.
d. a decrease in the monetary base but no change in the money supply.
A
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Insurance companies create wealth by
a. reducing the amount of risk that the risk averse must bear b. reducing the amount of risk that risk lovers must bear c. increasing the amount of risk that the risk averse must bear d. increasing the amount of risk that risk lovers must bear
A country should export the goods in which it has an absolute advantage
a. True b. False Indicate whether the statement is true or false
As long as people have confidence that paper money will serve the functions of money, then it can serve the function of money
Indicate whether the statement is true or false
Goods are allocated in a market system by price rationing.
Answer the following statement true (T) or false (F)