If the Fed purchases government securities from the public, the
a. money supply will decrease.
b. reserves of commercial banks will decrease.
c. required reserves ratio will increase.
d. monetary base will increase.
D
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Refer to the above figure. The equilibrium level of real Gross Domestic Product (GDP) is
A) $6 trillion. B) $7 trillion. C) $12 trillion. D) $20 trillion.
You just heard about Burton's annual tent sale going on next week. This will likely cause your demand for a Burton jacket today to:
A. increase because of your income constraint. B. increase because of your expectations of the price of Burton jackets next week. C. decrease because of your income constraint. D. decrease because of your expectations of the price of Burton jackets next week.
Tariffs and quotas are forms of exchange controls
Indicate whether the statement is true or false
One-fifth of the population, rank ordered by income, is
A. An earnings-population quintile. B. An income quintile C. A population quintile. D. None of the choices are correct.