Use the following diagram to answer the next question.
Which of the following would cause a move from MS1 to MS2?
A. The banking system decides to hold less excess reserves and make more loans.
B. The federal funds rate increases.
C. The discount rate is increased by the regional Federal Reserve banks.
D. The Federal Open Market Committee decides to sell bonds.
Answer: A
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We say that the demand for labor is a derived demand because
A. labor is hired using the MRP = MRC rule. B. the forces of supply and demand do not apply directly to labor markets. C. we demand the product that labor helps produce rather than labor service per se. D. labor is a necessary input in the production of every good or service.
When you were 10 years old, your grandparents put $500 into an account for you paying 7 percent interest. Now that you are 18 years old, your grandparents tell you that you can take the money out of the account. What is the balance to the nearest cent?
a. $1,200.00 b. $1,111.77 c. $983.58 d. $859.09
An economic naturalist is someone who:
A. has an innate talent for using economic concepts. B. uses economic arguments to protect the environment. C. studies the process of natural selection in a cost-benefit framework. D. applies economic insights to understand everyday life.
In an open-market purchase the Federal Reserve ________ government bonds from the public and the supply of bank reserves ________.
A. sells; decreases B. buys; increases C. buys; decreases D. sells; increases