Of the four effects on interest rates from an increase in the money supply, the initial effect is, generally, the
A) income effect.
B) liquidity effect.
C) price level effect.
D) expected inflation effect.
B
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The Fed's policy is determined by the
A) Federal Open Market Committee. B) Executive Council to the Governor. C) Regional Federal Reserve Banks. D) Board of Governors. E) Federal Monetary Policy Committee.
________ are a form of regional integration where member countries lower internal trade barriers but maintain existing barriers against nonmembers
A) Customs unions B) Free trade areas C) Reciprocal trade agreements D) None of the above.
Refer to the above figures. Julie's total utility for consuming donuts reaches a maximum at 4 cookies. Which panel best represents marginal utility?
A. Panel A B. Panel B C. Panel C D. Panel D
Harvey Miller owns a baseball that was hit for a home run by Ted Williams. Harvey, a long-time Boston Red Sox fan, recently refused to sell his baseball for $75,000 even though he would not have paid someone more than $10,000 for the baseball if he did
not already own it. Harvey explained his decision not to sell the baseball by noting that: "Ted Williams was my hero. This baseball has a great deal of sentimental value for me." Which of the following can explain Harvey's behavior? A) the difference between implicit and explicit costs B) the scarcity of home run baseballs hit by Ted Williams C) the endowment effect D) how social influences can affect consumption choices