Use the following graph to answer the next question.
If demand for overnight funds in the graph should increase by $50 billion at each and every point on the demand curve, but the Federal Reserve wants to keep the target rate at 5.0%, what will be the new equilibrium quantity of reserves?
A. $200 billion
B. $100 billion
C. $150 billion
D. $250 billion
Answer: A
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If the government of a country uses expansionary monetary policy:
A) its currency will appreciate. B) its currency will depreciate. C) its currency will initially appreciate and then depreciate. D) its value of its currency in the foreign exchange market will not be affected.
An example of a real-life rule that might constrain people's behavior is:
A. minimum wage legislation. B. having 24 hours in a day. C. the earth's limited supply of oil. D. All of these are examples of real-life rules.
When the government taxes and spends, each activity affects GDP in the same proportion.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 9.1 below to answer the question(s) that follow. 
Figure 9.1Refer to Figure 9.1. This farmer's fixed costs are
A. $0. B. $24. C. $45. D. indeterminate unless we know the level of output the firm is producing.