If the economy is inflationary, the Fed would most likely:
a. encourage banks to provide loans by buying government securities.
b. encourage banks to provide loans by raising the discount rate.
c. encourage banks to provide loans by selling government securities.
d. restrict bank lending by selling government securities.
e. restrict bank lending by lowering the federal funds rate.
d
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When the price of summer tank tops falls and you buy more of it because it is relatively less expensive, this is called
a) The substitution effect b) The income effect c) The net effect of both the substitution effect and the income effect d) The equilibrium choice for hours worked.
Which of the following pairs of goods are NOT complements?
A) Hockey sticks and hockey pucks B) Computer CPUs and computer monitors C) On-campus student housing and off-campus rental apartments D) all of the above E) none of the above
A demand curve will shift out for any of the following reasons except that:
a. preference for a good increases. b. price of a substitute falls. c. income rises. d. price of a complement falls.
The quantity demanded of Coca Cola has increased. The best explanation for this is that
A. the price of Pepsi has decreased. B. Coca Cola has instituted a new, successful advertising campaign. C. Coca Cola consumers had an increase in income. D. the price of Coca Cola has decreased.