When the Fed ________ securities in an open market operation, banks' reserves ________, and therefore lending ________
A) sells; increase; increases
B) buys; increase; increases
C) sells; decrease; increases
D) buys; decrease; decreases
E) buys; do not change; does not change
B
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An increase in price will decrease demand.
Answer the following statement true (T) or false (F)
A normative economic statement
a. is a hypothesis used to test economic theory b. is a statement of fact c. is a statement of what ought to be, not what is d. indicates what will occur if certain assumptions are true e. enables economists to test hypotheses
A business owned by a single individual who is fully liable for its debts is called
a. a corporation. b. a proprietorship. c. a partnership. d. an agency.
A cutthroat competitor will not lower their price because they believe that
A. their competitors will lower their prices too. B. their competitors will raise their prices. C. they will lose money. D. they will be accused of unfair competition.