Darcy sells a government security worth $4,600,000 to the Federal Reserve Bank of Kansas City. She deposits these funds in her checking account to the First Commerce Bank. Her checking account had a $150,000 balance before the sale of the security. The reserves of the First Commerce Bank would:
A. increase by $4,750,000.
B. increase by $4,600,000.
C. decrease by $4,450,000.
D. decrease by $4,600,000.
Answer: B
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If there is a monopsony operating in the labor market illustrated in the figure above, the equilibrium wage and quantity of labor hired is
A) $15 and 50 hours. B) $10 and 100 hours. C) $10 and 50 hours. D) $5 and 50 hours.
The textbook suggests that rent controls
A. actually contribute to the housing shortage in the area where they are applied. B. are used in a government kickback scheme. C. actually contribute to the housing boom in an area where they are applied. D. have no effect on the local housing market.
All of the following fiscal policies will contribute to increasing budget deficits except:
a. tax cuts. b. increases in defense expenditures. c. increases in Social Security payments to the elderly and disabled. d. cuts in aid to farmers.
Use the following graph to answer the next question. 
The graph suggests that the GDP price index during the period shown was generally ________.
A. decreasing B. positive C. constant D. increasing