From 2007 to 2008, the Federal Reserve System reduced interest rates, the price which borrowers pay. As a result, economists expected that the quantity of money supplied would
a. increase.
b. decrease.
c. not change.
d. Uncertain-economic theory has no answer to this question.
b
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If a firm is practicing third-degree price discrimination and is charging a price of $8 per unit to consumers in Group A and a price of $10 to consumers in Group B, which of the following is true?
A) Group B consumers have a greater price elasticity than Group A consumers. B) Group A consumers have a lower price elasticity than Group B consumers. C) Group A consumers have a greater price elasticity than Group B consumers. D) Group A consumers are less responsive to price changes than Group B consumers.
Consider a situation in which the government has limited information about costs and benefits of pollution abatement associated with a given industry
However, it is known that the marginal social cost curve for emissions is much steeper than the marginal cost of abatement curve (in absolute terms). In this situation, which method of emissions control is preferable when the greatest concern is with accuracy of control rather than the cost of control? That is, should a fee be used or should a standard be used? Explain.
Enron's bankruptcy is much more troubling than Kmart's or Global Crossing's because
A. Enron was much bigger. B. Enron had more stockholders. C. Enron had more employees. D. Enron's trouble resulted from corrupt accounting practices.
Which of the following examples accurately reflects a perfectly competitive market?
a. Even though KTR Growers doubled its corn output, the market price did not change. b. When several soybean growers reduced their output, the market price soared. c. Because of a drought, the wheat output in Kansas dropped, and the market price fluctuated. d. Jake’s Vegies increased its output so much that the market price for beets and carrots dropped.