In the short run, when the Fed decreases the quantity of money
A) bond prices fall and the interest rate rises.
B) bond prices rise and the interest rate falls.
C) the demand for money increases.
D) the supply of money curve shifts rightward.
A
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In general, during the business cycle, when economic activity is peaking:
a. interest rates begin to creep higher b. unemployment levels are low c. inflation begins to edge higher d. all of the above
When people are holding money in excess of their demand for real money balances ________
A) the nominal interest rate will fall B) they increase their purchases of goods and services C) the central bank buys bonds to correct the imbalance D) all of the above E) none of the above
In 1776, ______________ was the most populated colonial city
a. New York b. Philadelphia c. Charleston d. Boston
On holiday weekends thousands of people picnic in state parks. Some picnic areas become so overcrowded the benefit or value of picnicking diminishes to zero. Suppose that the Minnesota State Park Service institutes a variable fee structure. On weekdays when the picnic areas get little use, the fee is zero. On normal weekends, the fee is $8 per person. On holiday weekends, the fee is $14 per
person. The fee system corrects a problem known as the a. Coase theorem. b. free rider problem. c. Tragedy of the Commons. d. public goods problem.