When the Fed wishes to decrease the money supply, it can
A. ask people to buy more bonds.
B. turn additional funds over to the Treasury.
C. increase the required reserve ratio.
D. decrease the required reserve ratio.
Answer: C
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The period of the business cycle which follows the trough is the
A) recession. B) expansion. C) peak. D) All of the above may follow the trough.
The allocations of goods and services from one group in a society to another are called:
a. mutually voluntary exchanges. b. in-kind transfers. c. grants. d. economic rents. e. transfer earnings.
Shama is producing candles in a perfectly competitive market. When she produces 500 candles, her total cost is $250. If she produces one additional candle, her total cost increases to $260
In order to maximize her profit, she should produce the additional candle A) if the market price for a candle is $12. B) only if the market price exceeds $260 for a candle. C) only if the market price exceeds $250 for a candle. D) if the market price for a candle exceeds $0.50. E) if her price exceeds her average total cost.
Figure 4.5 illustrates a set of supply and demand curves for hamburgers. A decrease in supply and a decrease in quantity demanded are represented by a movement from
A) point c to point a. B) point c to point d. C) point b to point c. D) point a to point d.