Here is how an open market purchase works: The Fed __________ government securities to (from) a commercial bank, which raises the bank's deposits at the __________ and increases the bank's __________
A) sells; Fed; reserves
B) buys; Fed; reserves
C) buys; Treasury; discount loans
D) sells; Treasury; required reserve ratio
E) buys; Fed; liabilities
B
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Worker surplus can be measured as an area on the market labor supply curve if worker tastes are quasilinear in leisure.
Answer the following statement true (T) or false (F)
Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket rises from $20 to $38
A) consumer surplus increases from $88 to $142. B) consumer surplus decreases from $62 to $12. C) no one will buy a ticket. D) only three tickets will be sold.
The SRAS curve is ____ with real output levels that ____
a. upward sloping; vary positively with the price level b. upward sloping; vary negatively with the price level c. vertical; are equal to the natural level of real output at all price levels d. vertical; can be either greater than or less than the natural level of real output
Consumer surplus can be measured as the area between the demand curve and the supply curve
a. True b. False Indicate whether the statement is true or false