To increase the nation's money supply, the Fed can:
A. increase the discount rate.
B. decrease the discount rate.
C. sell bonds.
D. increase the required reserve ratio.
Answer: B
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Which of the following definitely results in a product's equilibrium price rising?
A) an increase in both demand and supply B) a decrease in both demand and supply C) an increase in demand combined with a decrease in supply D) a decrease in demand combined with an increase in supply E) an increase in the supply combined with no change in the demand
Which of the following is NOT possible according to the law of demand?
A) a horizontal demand curve B) a vertical demand curve C) a downward-sloping supply curve D) an upward-sloping demand curve
The consumer equilibrium condition for two goods is achieved by equating the:
a. marginal utility of one to the price of the other for the last dollar spent on each good. b. prices of both goods for the last dollar spent on each good. c. marginal utilities of both goods for the last dollar spent on each good. d. ratios of marginal utility to the price of both goods for the last dollar spent on each good.
In the circular flow diagram, money flows from firms to households through the
a. product market b. payments market c. goods market d. services market e. resource market