An open market purchase by the Fed:
A. increases the total amount of reserves in the banking system.
B. decreases the total amount of reserves in the banking system.
C. does not change the total amount of reserves in the banking system.
D. causes the reserve requirement to fall.
Answer: A
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Figure 2-2
Assume that U.S. agricultural land is used either to raise cattle for beef or to grow wheat. represents the production possibility frontier for beef and wheat. Production at point H is
a.
unattainable given currently available technology and resources
b.
attainable by more fully employing already available resources
c.
attainable by using better technology which is already available
d.
attainable if beef production drops to zero
e.
attainable if all available resources are used to produce wheat
The aggregate supply and aggregate demand model is used to explain the:
A. overall health of the economy. B. way that unemployment may affect output, but not how price level does. C. overall effect of large markets within the economy. D. interaction of all sellers and all buyers within a particular market.
Which of the following statements is INCORRECT?
A. As the price of X falls and we move down an individual's demand curve for X, the money income of the individual also changes. B. If a firm decreases the price of its product, its total revenue must decrease. C. The own price elasticity of demand is constant at all points along a linear demand curve. D. None of the statements is correct.
The two leading countries of origin of U.S. legal immigrants in 2011 were Mexico and:
A. China B. India C. The Dominican Republic D. The Philippines