If the Fed buys a U.S. Treasury bill from a member of the public, the banking system has
a. less reserves and the money supply tends to fall.
b. more reserves and the money supply tends to fall.
c. less reserves and the money supply tends to grow.
d. more reserves and the money supply tends to grow.
d
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A vertical merger is one that takes place between two companies producing different goods or services for one specific finished product
Indicate whether the statement is true or false
A country's trade balance equals:
A. the value of tariffs less the number of quotas. B. the number of quotas less the value of tariffs. C. the value of imports minus the value of exports. D. the value of exports minus the value of imports.
When the Fed buys government securities
A. reserves increase, leading to a decrease in the money supply by an amount more than the purchase of the government securities. B. reserves decrease, leading to a decrease in the money supply by an amount more than the purchase of the government securities. C. reserves decrease, leading to a increase in the money supply by an amount more than the purchase of the government securities. D. reserves increase, leading to a increase in the money supply by an amount more than the purchase of the government securities.
Suppose the demand for books goes down when the price of video games goes down. We can say that these two goods are
A. perfect substitutes. B. unrelated goods. C. complements. D. substitutes.