The initial impact of the Fed's open market sale of government securities by the Federal Reserve is
A) an increase in the money supply by some multiple of the dollar volume of the sale.
B) an increase in commercial bank deposits at the Fed.
C) a fall in the money supply by some multiple of the dollar volume of the sale.
D) a reduction of the commercial banking system's reserve deposits at the Fed.
Answer: D) a reduction of the commercial banking system's reserve deposits at the Fed.
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According to the book, Akio Morita (the founder of Sony) drew a long-run average cost curve that was
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What is the opportunity cost of a decision?
What will be an ideal response?