Which of the following statements is correct?
a. To control the money supply, the Fed relies primarily on the reserve requirement
b. The discount rate is the rate of interest banks charge to their best customers.
c. The Fed changes the reserve requirement frequently.
d. Because the Fed has no way to earn income, it is dependent upon Congress for appropriations.
e. Banks can turn a borrower's IOU into money.
e
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An increase in the number of suppliers in a market results in a
A) movement up along the supply curve. B) rightward shift in the supply curve. C) leftward shift in the supply curve. D) Both answers A and C are correct.
According to the quantity theory of money, an increase in the money supply causes the price level to _____ and the value of money to _____
Fill in the blank(s) with correct word
The following are comments by consumers about the wheat market. Which of them reflects a perfectly competitive market?
a. “It is unusual for a company to leave the wheat market.” b. “Getting into the wheat market can be difficult.” c. “The quality of wheat often declines as the price rises.” d. “It doesn‘t matter where you buy wheat, the quality is the same.”
GDP estimates expenditures for which of the following items?
A. "Psychic income" people derive from their work B. Do-it-yourself activities C. Household spending for health and home insurance D. Purchases of illegal drugs by addicts