The immediate impact when the Federal Reserve buys government securities
A) from banks is that the level of bank reserves will decrease.
B) from government security dealers is that the level of bank reserves and deposits will increase.
C) from government security dealers is that the level of bank reserves will increase and the level of deposits decrease.
D) from banks is that the level of deposits will increase but bank reserves will decline.
B
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Use the following table to answer the question below.Alexandra's Production Possibilities ScheduleNatalia's Production Possibilities ScheduleNumber of Scarfs Knitted per dayNumber of Sweaters Knitted per dayNumber of Scarfs Knitted per hourNumber of Sweaters Knitted per hour040433236242916112080If Natalia were to export a good, which one(s) would she export?
A. Scarves B. Sweaters C. Both sweaters and scarves D. Neither sweaters nor scarves
In a stock market boom ________
A) autonomous consumption might increase because stock holders might feel richer and consume more B) autonomous investment might increase because a higher stock value for a firm helps firms raise funds for increased investment C) the IS curve might shift to the right D) all of the above E) none of the above
When demand is inelastic,
A) price and revenue move in opposite directions. B) price and revenue are not related. C) price and quantity demanded move in opposite directions. D) price and revenue move in the same direction.
Answer the following statement(s) true (T) or false (F)
1. The extent to which a change in price affects quantity demanded may vary considerably from product to product and over the various price ranges for the same product. 2. A demand curve, or a portion of a demand curve, can be elastic, inelastic, or supply elastic. 3. A good is elastic if the percentage change in quantity demanded is greater than the percentage change in price. 4. A good is inelastic if quantity demanded changes proportionally less than the price changes 5. The steeper the demand curve passing through a given point, the more elastic the demand.