What is the change in consumer surplus after trade as shown in Exhibit 2?
a. – b – c
b. – b – c – e – f
c. + e + f
d. + b + c
a. – b – c
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If there is a change in the federal funds rate from a target rate due to an increase in the demand for reserves, the Fed can maintain the target by:
A) causing an upward movement along the supply of reserves curve. B) causing the supply curve of reserves to shift to the left. C) causing a downward movement along the supply of reserves curve. D) causing the supply curve of reserves to shift to the right.
"Exotic" mortgages became popular in part, because they allow someone of
A. modest means to build more equity in their home than a traditional mortgage would allow. B. means to get into a home they would easily have been able to afford. C. modest means to build their credit score by proving they could make challenging payments. D. modest means to get into a home they might otherwise not have been able to afford.
The problem of "double marginalization" is
a. The retail price being too low due to an absence of both manufacturer and retailer markup b. The retail price being too high due to the existence of both manufacturer and retailer markup c. The retail price consisting only of the manufacturer markup d. The retail price consisting only of the retailer markup
Government outlays and government expenditures mean the same thing
a. True b. False