If the Federal Reserve sells $1,000 in bonds and the required reserve ratio is 0.1 (assume banks hold no excess reserves) what will be the total change in reserves at all banks?
a. $10,000
b. $1,000
c. -$10,000
d. -$1,000
e. -$1,100
D
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Supply-side inflation is caused by
A) an increase in aggregate demand and no change in aggregate supply. B) a decrease in aggregate supply and no change in aggregate demand. C) a decrease in aggregate demand and no change in aggregate supply. D) an increase in aggregate supply and no change in aggregate demand.
If marginal utility is positive but diminishing, as more units of a good are consumed, then the total utility from the good must be
A) falling. B) positive and rising at an increasing rate. C) positive and rising at a decreasing rate. D) positive and rising at any rate.
Which of the following is the BEST example of a private good?
A) a can of Mountain Dew B) fish in the ocean C) cable television D) national defense
The United States and many other countries often impose trade sanctions on other countries. These sanctions
A) decrease producer and consumer surplus in both the sanctioned and sanctioning countries. B) tend to increase total welfare. C) tend to decrease the deadweight loss. D) tend to decrease consumer and producer surplus only in the sanctioned country.