The set of goods and services that maximizes the level of satisfaction for each consumer subject to limited income is
A. substitution effect.
B. the consumer optimum.
C. increasing marginal utility.
D. diminishing marginal utility.
Answer: B
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Margin requirements on stocks are set by
A) the New York Stock Exchange. B) the National Association of Securities Dealers. C) the Federal Reserve System. D) the Securities Exchange Commission.
The higher the reserve requirements, the
a. greater the possible expansion of the money supply. b. less the possible expansion of the money supply. c. more loans a bank can extend. d. higher the interest a bank must pay on its checkable deposits.
Which of the following has never been a monetary policy tool of the Fed?
A) open market operations B) the required reserve ratio C) the discount rate D) the term auction facility (TAF) program E) income tax rates
The opposite of the bandwagon effect is:
A. a network externality, positive or negative. B. a positive network externality. C. the substitution effect. D. the snob effect.