Suppose that the Federal Reserve conducts an open market sale. Everything else held constant, this will cause the demand for U.S. assets to ________ and the U.S. dollar will ________
A) increase; appreciate
B) increase; depreciate
C) decrease; appreciate
D) decrease; depreciate
A
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Peanut butter and jelly are complements for consumers. In 2015, the price of peanut butter increased. As a result, the ________ increased, which led to ________ in the price of jelly and ________ in the quantity of jelly
A) demand for jelly; a decrease; a decrease B) supply of jelly; a decrease; an increase C) supply of jelly; an increase; a decrease D) demand for jelly; an increase; an increase
If net capital flows were -28 billion and domestic investment was 17 billion, then the amount of domestic savings was
A) -11 billion. B) 45 billion. C) 11 billion. D) -9 billion.
Interest income minus interest expenses divided by assets is a measure of bank performance known as the
A) operating income. B) net interest margin. C) return on assets. D) return on equity.
According to the case, price has a disproportionate effect on the bottom line relative to
A) demand changes. B) total and fixed costs. C) capital expenditures. D) the cost of capital.