When the Fed conducts an open market sale, it
A) raises interest rates and increases the money supply.
B) raises interest rates and reduces the money supply.
C) lowers interest rates and reduces the money supply.
D) lowers interest rates and increases the money supply.
Ans: B) raises interest rates and reduces the money supply.
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What happens to quantity supplied when the price is raised?
A. It rises B. It falls C. It stays the same D. It cannot be determined if it rises, falls, or stays the same
The Lorenz curve showing perfect income equality would be
A. I.
B. J.
C. K.
D. L.
Disinflation began in the year _____.
Which elasticity measures producers' responsiveness to a change in price?
A. Price elasticity of demand B. Income elasticity of supply C. Cross-price elasticity D. Price elasticity of supply