Reserves in the banking system will increase if the Fed:
A. sells euro-dominated bonds and keeps the euros from the sale.
B. sells euro-dominated bonds and exchanges the euros for dollars.
C. sells euros or buys dollars.
D. buys euros or sells dollars.
Answer: D
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Subsidies ________ the price paid by the buyer and ________ the price received by the seller
A) increase, increase B) increase, decrease C) decrease, increase D) decrease, decrease E) do not change; increase
The labor force is defined as people
A) who have a job or are looking for a job. B) in the working-age population who have a job. C) in the working-age population who have a full time job. D) who are 16 years of age or older.
The marginal rate of transformation of y for x represents
A) the slope of the budget constraint. B) the rate at which the consumer must give up y to get one more x. C) -Px/Py. D) All of the above.
If Ben values good X more than good Y and Catherine values good Y more than good X a firm can increase its profits by
A) charging the same price for both goods. B) bundling the goods. C) selling the goods in a competitive market. D) charging one price per good.