A new hormone will increase the amount of milk each cow produces. If this hormone is adopted by many dairies, what will be the effect on the milk market?
a. an increase in supply, higher equilibrium price, and lower equilibrium quantity
b. a decrease in supply, lower equilibrium price, and lower equilibrium quantity
c. an increase in supply, lower equilibrium price, and higher equilibrium quantity
d. an increase in supply, higher equilibrium price, and higher equilibrium quantity
e. a decrease in supply, lower equilibrium price, and higher equilibrium quantity
C
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If the Federal Reserve wishes to increase the money supply it should decrease the discount rate and/or decrease the required reserve ratio and/or buy government securities on the open market
a. True b. False Indicate whether the statement is true or false
If we compare income percentages of total income of the lowest quintile in 1968 with 2008, we would find that it was
A. rising. B. staying about the same. C. falling.
Tax cuts shift aggregate demand
a. right as do increases in government spending. b. right while increases in government spending shift aggregate demand left. c. left as do increases in government spending. d. left while increases in government spending shift aggregate demand right.
Interlocking directorates are:
A. legal if the two firms have small market shares. B. illegal under provisions of the Federal Trade Commission Act of 1914. C. illegal under provisions of the Celler-Kefauver Act of 1950. D. illegal under provisions of the Clayton Act of 1914.