An open market sale of government securities by the Fed will cause which of the following?
A. an excess quantity of reserves demanded and a reduction in the federal funds rate
B. an excess quantity of reserves demanded and an increase in the federal funds rate
C. an excess quantity of reserves supplied and an increase in the federal funds rate
D. an excess quantity of reserves supplied and a reduction in the federal funds rate
Answer: B
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The need for government subsidies of irrigation produced
(a) the Desert Land Act (1877). (b) the Interstate Commerce Commission Act (1887). (c) the Newlands Act (1902). (d) all of the above.
Refer to the above figure. Demand will be unit-elastic when quantity is between
A) 0 and A. B) 0 and B. C) A and B. D) B and C.
If quantity demanded is greater than quantity supplied, then
a. an excess supply exists b. the market is in equilibrium c. the price will rise d. the supply curve must be vertical e. there will be no tendency for the situation to change
________ is the sunk cost for a perfectly competitive firm in the short run, whether the firm produces or shuts down
a. Variable cost b. Fixed cost c. Marginal cost d. Total cost