Which of the following statements is false?
a. A decrease in the reserve ratio does not change the monetary base.
b. Purchases of foreign currency by the central bank increase the monetary base.
c. Discount loans to banks decrease a nation's monetary base.
d. All are false.
e. All are true.
.C
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In response to the financial crisis in 2008, the Fed created which of the following policy tools?
A) quantitative easing B) the required reserve ratio C) the discount rate D) the federal funds rate E) open market operations
With the value of money on the vertical axis, the money supply curve is
a. upward-sloping. b. downward-sloping. c. horizontal. d. vertical.
You are trying to decide whether to purchase the latest Harry Potter book online or borrow it from the library. There is no charge for borrowing a book from the library, but going to the library takes more time than ordering a book online. Regardless of how you get the book, its benefit to you is the same. If the cost of buying the book online is $13, then you should:
A. borrow the book from the library if the cost of doing so (in terms of the extra time it takes) is greater than $13. B. borrow the book from the library if the cost of doing so (in terms of the extra time it takes) is less than $13. C. borrow the book from the library because you can get it from the library for free. D. buy the book online because it takes less time.
Figure 7.3
The price of Video Game rentals is $2 For MUA/$ and $4 for MUB/$.The price of Energy Drinks is $2.Budget = $28.Refer to Figure 7.3. If the price of video game rentals drops from $4 to $2, the marginal utility per dollar at the utility maximizing combination is ________ utils for video game rentals and ________ utils for energy drinks.
A. 18; 18 B. 18; 16 C. 16; 16 D. 8; 16