If the Federal Reserve increases the money supply, then initially people want to
a. sell bonds so the interest rate rises.
b. sell bonds so the interest rate falls.
c. buy bonds so the interest rate rises.
d. buy bonds so the interest rate falls.
d
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There are substantial racial differences in college attendance, within income classes
Indicate whether the statement is true or false
Imagine a simple economy with only two people, Leroy and Percy. If the Social Welfare Function is W = U L + U P , and the Utility Possibilities Frontier is UPF = U L + 2U P , what will be the societal optimum?
If every person is willing to accept money in payment, rather than goods and services, money serves as a:
A. medium of exchange. B. unit of account. C. store of value. D. coincident exchange.
Refer to the graph below. Suppose that its shows the S and D graphs in a market where production entails a significant amount of pollution. In this case, the government should use its coercive power to make:
A. The supply curve shift to the left
B. The supply curve shift to the right
C. The demand curve shift to the left
D. The demand curve shift to the right