When good weather speeds the check-clearing process, float tends to ________ causing the Fed to initiate ________ open market ________

A) decrease; defensive; sales
B) decrease; dynamic; sales
C) decrease; defensive; purchases
D) increase; dynamic; purchases


C

Economics

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The effect of a change in price on the quantity bought when the consumer remains indifferent between the original and the new situation is called the

A) income effect. B) indifference effect. C) substitution effect. D) demand effect.

Economics

In the above figure for a monopolistically competitive firm, the profit-maximizing output and price are respectively

A) 80 units and $11. B) 50 units and $8. C) 60 units and $9. D) 60 units and $14.

Economics

To an American, the demand curve for euros tells

a. that Americans do not want to purchase euros b. how many euros Americans would want to buy in a given time period, at each different exchange rate c. the real interest rate on foreign currency over time d. how many Americans are willing to buy euros e. how many euros have been purchased during a given time period

Economics

An increase in net taxes (taxes paid by the private sector to the government less transfer payments and interest payments made by the government to the private sector) will:

A. decrease public saving. B. increase private saving. C. increase public saving. D. reduce investment in new capital equipment.

Economics