According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. consumer surplus will decrease from (A + B + C) to (B + C) only.
B. consumer surplus will increase from (A + B + C) to A only.
C. consumer surplus (B + C) will transfer to producers.
D. consumer surplus will decrease by (B + C).
D. consumer surplus will decrease by (B + C).
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If the price of bonds falls, the
a. demand for bonds will rise b. supply of bonds will fall c. supply of bonds will rise d. interest rate will rise e. interest rate will fall
When the Fed sells bonds, bank reserves increase.
a. true b. false
To move quickly to turn around the crisis during 2007-2008, the U.S. Federal Reserve relied on:
a. lowering taxes. b. removing restrictions on collateral, adding more categories of securities purchased by the Federal Reserve, and expanding its operations with nonbank dealers. b. tightening up credit rules and keeping banks out of trouble. d. admonishing the administration for its excessive debt situation.
Under a fixed exchange rate regime, if a country has an ________ exchange rate, then its central bank's attempt to keep its currency from appreciating will result in a ________ of international reserves
A) undervalued; gain B) undervalued; loss C) overvalued; gain D) overvalued; loss