Use the following market-for-money diagrams to answer the next question.
If the Federal Reserve increased the stock of money, the
A. S curve would shift leftward and the equilibrium interest rate would rise.
B. D3 curve would shift leftward and the equilibrium interest rate would rise.
C. S curve would shift rightward and the equilibrium interest rate would fall.
D. D3 would shift leftward and the equilibrium interest rate would fall.
Answer: C
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A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna holds an auction between the two bidders, and both the bidders have low values, she would earn ___ from the auction
a. Just above $100 b. $100 c. Just above $70 d. $70
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