Answer: D) the money supply will decrease.
When the Federal Reserve sells a government security to a bond dealer, which transmits payment from a transactions deposit account at a bank
A) the cash of the Federal Reserve will decrease.
B) the net worth of the commercial bank will decrease.
C) the loans of the commercial bank will increase.
D) the money supply will decrease.
Economics
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Which of the following is not one of the three key services provided by the financial system to savers and borrowers?
A) risk sharing B) credit counseling C) liquidity D) information
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Which of the following does not shift the entire consumption function?
a. Net Wealth b. Price Level c. Interest Rates d. Producer Expectations
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When a monopolist practices price discrimination as opposed to setting a single price, efficiency decreases.
a. true b. false
Economics
Answer the following statement true (T) or false (F)
1) The wants of consumers are expressed in the product market with "dollar votes." 2) Costs can be defined as total payments made to workers, land owners, and capital suppliers less payments to the entrepreneur for organizing and combining the other resources used to produce a good. 3) Continued losses in an industry will cause some firms to reduce output or eventually leave the industry. 4) The guiding function of prices tends to keep resources flowing toward their most highly valued uses.
Economics