If the Federal Reserve System buys government securities from commercial banks and the public, then ________.
A. the money supply will contract
B. commercial bank reserves will decline
C. commercial bank reserves will be unaffected
D. it will be easier to obtain loans at commercial banks
Answer: D
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An increase in demand will cause the equilibrium price and quantity to rise, ceteris paribus
Indicate whether the statement is true or false
Michael Jordan has more athletic ability than most individuals. Thus, he is more productive at most tasks involving physical skill. Explain why then, it is more efficient for Michael Jordan to pay someone else to mow his lawn
What will be an ideal response?
At macroeconomic equilibrium, total ________ equals total ________
A) consumption; production B) taxes; transfers C) investment; inventories D) spending; production
Over the past twenty years the Fed's policy experience
a. has been good and improving b. is an indicator that economic policy is confused c. shows a focus on full employment d. reveals a lack of concern about unemployment e. has been generally poor and deteriorating