If the Fed wants to increase the money supply, it can __________ the required reserve ratio, conduct an open market __________, or __________the discount rate
A) lower; sale; raise
B) lower; purchase; raise
C) lower; purchase; lower
D) raise; sale; lower
E) raise; purchase; raise
C
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Price controls
a. are always popular with consumers because they lower prices. b. create shortages. c. increase producer surplus because firms can now sell a greater quantity of a good at a lower price. d. are necessary to preserve equity.
Empirical evidence suggests that the federal budget has remained more or less in surplus between 1990 and 2002
a. True b. False Indicate whether the statement is true or false
If Olivia's income increases from $40,000 to $50,000 and her tax liability increases from $6,000 to $9,000, which of the following is true?
a. Her marginal tax rate is 18 percent in this range. b. Her marginal tax rate is 30 percent in this range. c. Her average tax rate was 22.5 percent when her income was $40,000. d. The tax structure must be regressive in the range between $40,000 and $50,000.
While waiting in line to buy two tacos at 75 cents each and a medium drink for 80 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50. For Jordan, the marginal cost of purchasing the third taco would be
a. zero. b. 20 cents. c. 75 cents. d. 80 cents.