If the Fed conducts open-market purchases, the money supply
a. increases and aggregate demand shifts right.
b. increases and aggregate demand shifts left.
c. decreases and aggregate demand shifts right.
d. decreases and aggregate demand shifts left.
a
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After a massive promotional campaign of Justin Bieber's latest music album, the producers decided to raise the prices on the album. This implies that the producers expect the promotion to have made the demand for the album
a. More elastic b. Unitary elastic c. Perfectly elastic d. More inelastic
If a seller of a high-quality good cannot prove the quality of that good:
A. buyers will not be willing to pay the amount for which they value a high-quality good. B. buyers will only be willing to pay the amount for which they value a low-quality good. C. the good will never be offered for sale. D. the good will trade at its equilibrium price.
Vault cash is equal to $2 million, deposits by depository institutions at the central bank are $1 million, the monetary base is $15 million, and bank deposits are $35 million. Currency held by the nonbank public is
A) $3 million. B) $12 million. C) $15 million. D) $20 million.
The economic optimum production level for a common property resource occurs where
a. Total revenue equals total costs b. Average revenue equals marginal cost c. Average revenue equals average cost d. Marginal revenue equals total costs e. Marginal revenue equals marginal cost