If the Fed buys securities on the open market, this will
a. decrease banks’ excess reserves.
b. increase banks’ excess reserves.
c. leave banks’ excess reserves unchanged.
d. lower the reserve requirement.
b. increase banks’ excess reserves.
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On Saturday morning, you rank your choices for activities in the following order: go to the library, work out at the gym, have breakfast with friends, and sleep late. Suppose you decide to go to the library. Your opportunity cost is
A) working out at the gym, having breakfast with friends, and sleeping late. B) working out at the gym. C) zero because you do not have to pay money to use the library. D) not clear because not enough information is given.
Refer to Figure 11-16. The figure above illustrates a series of isoquants. Which of the following statements is true?
A) Points z and y represent the same output; this output is produced with more capital at z than at y. B) Point z represents a greater output than point x or point y. C) Points x, z, and y all represent the same output. D) Point x and y represent the same output but the cost of production at y is greater than the cost of production at x.
The demand curve for labor is always positively sloped
a. True b. False Indicate whether the statement is true or false
More buyers enter a market Demand increases....
a. Quantity supply lends to increase b. The products are able to use resourcing with higher opportunity cost c. Price of good will raise (or increase) d. All