If the Fed sells a U.S. government bond to a bank, what is the effect on the money supply?
a. It will increase

b. It will not change.
c. It will decrease.
d. It will be uncertain.


c

Economics

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A person's real income will increase by 3% if her nominal income increases by

A. 5% while the price index falls by 2%. B. 5% while the price index rises by 2%. C. 2% while the price index falls by 5%. D. 2% while the price index rises by 5%.

Economics

All other things being equal, the __________ the percentage of one's budget spent on a good, the __________ the price elasticity of demand.

A) greater; higher B) smaller; lower C) greater; lower D) smaller; higher E) a and b

Economics

Which of the following is a current example of a government-granted cartel?

A) the "Big Three" accounting firms B) the U.S. automobile industry C) U.S. professional baseball D) the U.S. airline industry

Economics

Identify four factors that will cause the value of put options to decrease.

What will be an ideal response?

Economics