An open market ________ by the Fed increases the money supply, which leads to ________ interest rates and increased GDP
A) sale; decreased B) purchase; decreased
C) purchase; increased D) sale; increased
B
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A cost borne not by the producer but by other people is called ________ cost
A) an unregulated B) an external C) a consumer D) a non-production
What is economic growth and how do we calculate its rate?
What will be an ideal response?
A decrease in the equilibrium price for a product will result
A) when there is a decrease in demand and a decrease in the number of firms producing the product. B) when there is an increase in supply and a decrease in demand for the product. C) when the quantity demanded for the product exceeds the quantity supplied. D) when there is a decrease in supply and a decrease in demand for the product.
The sale of Treasury securities by the Federal Reserve will, in general
A) not change the quantity of reserves held by banks. B) decrease the quantity of reserves held by banks. C) increase the quantity of reserves held by banks. D) not change the money supply.