The sale of Treasury securities by the Federal Reserve will, in general,
A) decrease the quantity of reserves held by banks.
B) not change the money supply.
C) not change the quantity of reserves held by banks.
D) increase the quantity of reserves held by banks.
A
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If the price of a burger decreases by 5 percent and as a result the quantity of burgers demanded increases by 8 percent, the price elasticity of demand equals
A) 0.60. B) 0.40. C) 1.60. D) 0.625.
For Antonio, the income effect of an interest-rate increase is stronger than the substitution effect. In response to a higher interest rate, will Antonio save more or will he save less?
Which statement is true?
A. Because of their large populations, India and China have relatively high per capita GDPs. B. The only way to industrialize is to build up capital in the form of new plant and equipment. C. The NICs have the highest per capita GDPs in the world. D. We find GDP per capita by dividing GDP into population.
Which of the following is an accurate example of what an individual demand curve shows?
a. Dave’s demand for blue jeans will increase as the price of blue jeans drops. b. As the overall price of goods in the United States increases, the demand for goods decreases. c. When the demand for KDF sneakers decreased, the company tried a new design. d. Chicago’s legal firms raised their fees, causing the number of law firms to increase.