An open market sale of T-bonds by the Fed causes the money supply to

a. fall and bond prices to fall.
b. rise and bond prices to fall.
c. rise and bond prices to rise.
d. fall and bond prices to rise.


a

Economics

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When the long-run average cost curve is downward sloping,

A) economies of scale are present. B) diseconomies of scale are present. C) the firm experiences constant returns to scale. D) the average fixed cost curve must be upward sloping. E) The premise of the question is wrong because long-run average cost curves never slope downward.

Economics

Which of the statements below best explains how the use of money in an economy adds to the wealth of the society using it? Money creates wealth

A) because it is capital. B) by earning interest. C) by making specialization less costly. D) insofar as it is invested rather than consumed.

Economics

When the United States gives MFN status to China, it means that

A) China is treated better than other U.S. trading partners. B) China is treated the same as other U.S. trading partners. C) China is treated worse than other U.S. trading partners. D) China is better than all the nations in the WTO. E) China is legally bound to reciprocate.

Economics

Hyperinflation might lead to a severe decline in total output if

What will be an ideal response?

Economics