When commercial banks borrow reserves from the Fed, the quantity of reserves in the banking system ________ and, ultimately, the money supply ________.
A. increases; increases
B. decreases; decreases
C. increases; decreases
D. decreases; increases
Answer: A
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A "household" refers to people related by blood or marriage
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. The labor supply curve(s) will shift left if there is a decrease in wages. 2. An increase in the price of a product signals consumers that there is an overage and the product should perhaps be economized on. 3. The market price system provides a highly efficient mechanism for disseminating information about relative scarcities of goods, services, labor, and financial capital. 4. It is a common mistake to confuse the slope of the supply curve with its elasticity. 5. Zero elasticity in either a supply or demand curve occurs when a price change of one percent results in a quantity change of one percent.
The costs of a firm indicate the desire of consumers for
a. the product produced by the firm. b. other goods that might have been produced with the same resources. c. goods that can be easily substituted for the good produced by the firm. d. goods that are complementary with the good produced by the firm.
A production function specifies the relation between ____________ and the ___________ to ____________________
A) technology; output; Real GDP B) technology; the factor inputs; Real GDP C) price; quantity; Real GDP D) Real GDP; the factor inputs; the price level