Which of the following actions has no effect on the total money supply?
A. There is a transfer of deposits from one bank to another bank.
B. There is change in the money multiplier.
C. The Federal Open Market Committee buys government securities.
D. The Federal Open Market Committee sells government securities.
Answer: A
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Indicate whether the statement is true or false
In the 19th century, Russian peasants noticed that during cholera epidemics there were lots of doctors around; in an attempt to eliminate cholera, they killed all the doctors. This is an example of
a. mistaking correlation with causation. b. the fallacy of opportunism. c. excessive abstraction. d. rationality. e. marginal analysis.
In general, which of the following would libertarians argue is more important than equal outcomes?
a. equal opportunities b. equal incomes c. providing a social safety net d. offering the opportunity to purchase social insurance
Based on the graphic for perfect competition versus monopoly, the producer surplus for perfect competition is ______.
a. area a
b. area b
c. area c
d. zero