Aside from the simple pleasure of seeing your own good advertised on television or in the print media, one important reason that firms advertise is to

a. lower their costs
b. reduce product differentiation
c. shift their own demand curves to the right
d. decrease market share
e. shift their own demand curves to the left


C

Economics

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Suppose that the Fed purchases a $1,000 government bond from you. If you deposit the entire $1,000 in your bank, what is the total potential change in the money supply as a result of the Fed’s action if reserve requirements are 10 percent?

A. $10,000 B. $5,000 C. $3,000 D. $2,000

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