The Fed conducts an open market purchase of Treasury bills of $10 million. If the required reserve ratio is 0.10, what change in the money supply can be expected using the oversimplified money multiplier?
a. $100 million
b. $10 million
c. 0
d. ?$10 million
e. ?$100 million
a
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For the past 15 years the American public has wanted to buy big trucks. The Big Three automakers delivered, investing billions in plants that build gas guzzlers. Now, when customers walk into showrooms, gas mileage is on their mind
Retooling the industry will take years, so in the meantime GM, Ford and Chrysler are tweaking their existing models. They're changing tires, adjusting transmissions and exhaust valves in hopes of getting one or maybe two more miles per gallon. Which of the decisions by the Big Three to gain gas mileage is a short run decision? A) adjusting exhaust valves B) adjusting transmissions C) changing tires D) All of these decisions are short run decisions.
Sales agents being paid a fixed commission on the sales are more likely to
a. Tell their bosses that they need to price higher to make sales b. Tell their bosses that they need to price lower to make sales c. Not say anything to their boss d. None of the above
Which firm provides the better signal when trying to decide which of the? firms' stock to? buy?
A) Firm A, which uses an independent accounting firm for auditing.
B) Firm B, which uses an internal group for auditing.
C) Firm C, which has seen its stock go up by $20 per share in the last week.
D) Firm D, which hasn't been under SEC investigation for over 5 years.
If we observe a decrease in the price of a good and an increase in the amount of the good bought and sold, this could be explained by
a. a decrease in the supply of the good. b. a decrease in the demand for the good. c. an increase in the demand for the good. d. an increase in the supply of the good.