If the Federal Reserve sells a $2,000 bond to a bond dealer who pays with a check written on an account at Second National Bank, what changes will occur on the bank's balance sheet after the check clears?
a. Reserves and total assets will increase by $2,000 . demand deposits and total liabilities will decrease by $2,000.
b. Reserves, demand deposits, total assets, and total liabilities will all increase by $2,000.
c. Reserves and total assets will decrease by $2,000 . demand deposits and total liabilities will increase by $2,000.
d. Reserves, demand deposits, total assets, and total liabilities will all decrease by $2,000.
e. Reserves will decrease by $2,000 . demand deposits, total assets, and total liabilities will all increase by $2,000.
D
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If a graph has a line that shows the quantity of flat-screen televisions sold in the last five years, it is known as
A) a pie chart. B) a demand curve for outsourcing. C) a time-series graph. D) a supply curve of outsourcing.
Which of the following is the formula for velocity?
a. Velocity = nominal GDP/real GDP b. Velocity = real GDP/M c. Velocity = (P × Y)/(M × V) d. Velocity = nominal GDP/M
The market tends to underproduce public goods because
A. The consumption of a public good by one person prevents the consumption of the same good by another person. B. It is difficult to measure the benefit of a public good such as national defense. C. The free-rider dilemma results in exclusive consumption of a good. D. Joint consumption allows those who do not pay for the good to still benefit from the good.
Refer to the above figure. If the government uses rate-of-return regulation for the natural monopolist, the firm will charge price
A. P1 and sell Q4 units. B. P3 and sell Q3 units. C. P5 and sell Q1 units. D. P2 and sell Q1 units.