When the Fed buys government bonds, bank reserves fall.
a. true
b. false
Ans: b. false
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A test was scheduled for Monday morning, but you went to a party on Saturday night. If you hadn't attended the party, you could have studied for the test or gone to a movie. Which of the following is true?
a. The opportunity cost of going to the movie is studying for the test. b. The opportunity cost of going to the party is the movie. c. The opportunity cost of going to the party is both the movie and the study time. d. Because you could go to the party only that night but could go to a movie any time, the opportunity cost of the party is the study time. e. From the above information, it's not possible to determine the opportunity cost of attending the party.
The income and substitution effects of a price change occur because:
a. consumer incomes are not constant. b. consumer substitution rates are not constant. c. income and substitution effects never occur simultaneously. d. of diminishing marginal utility and the equimarginal principle. e. of increasing marginal utility and the equimarginal principle.
Average fixed cost
A. decreases steadily as output increases. B. increases steadily as output increases. C. exhibits diminishing returns. D. is a horizontal line.
Which of the following statements is true?
A. The income of the bottom fifth of families rose 10 percent from 1970 to today. B. The income of the bottom fifth of families fell 10 percent from 1929 to today. C. Income distribution became less equal from 1929 to 1970. D. Income distribution became less equal from 1970 to today.