The Fed buys securities and gives a bond dealer a check for the amount. After the check has cleared
A) reserves remain unchanged because the increase of reserves at the dealer's bank are offset by an increase in reserves at the Fed.
B) reserves have risen by the amount of the check because the Fed clears the check by increasing the amount of the bank's deposits with the Fed.
C) reserves have fallen by the amount of the check because the Fed clears the check by reducing the bank's deposits at the Fed.
D) reserves have fallen by the amount of the reserves times the reserve ratio and the money supply increases by the difference between the amount of the check and the increase in the reserves.
B
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"Government should act to reduce poverty levels."
A) This statement is a normative statement. B) This statement is a positive statement. C) This statement is an example of the fallacy of composition. D) This statement is an example of the post hoc fallacy.
According to Figure 2.5, the United States civilian unemployment rate in June 2013 was ________
A) 5.0% B) 22.1% C) 7.8% D) 8.5% E) none of the above
Diseconomies of scale are associated with
a. Inefficiencies b. Cost reduction c. Improvement in technology d. Division of labor
At an antique auction, Ross hoped to purchase a mid-century coffee table for less than $400. When other bidders drove the price of the item above that level, he dropped out of the bidding. What economic concept does this story represent?
a. market efficiency b. opportunity cost c. marginal thinking d. absolute advantage