A decrease in ________ increases the money supply since it causes the ________ to rise
A) reserve requirements; monetary base
B) reserve requirements; money multiplier
C) margin requirements; monetary base
D) margin requirements; money multiplier
B
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If Ewan is consuming his utility maximizing bundle and the price of one good falls, what happens to the marginal utility per dollar spent on this good (MU/P), and what should Ewan do?
A) MU/P has increased and Ewan should buy more of this good. B) MU/P has decreased and Ewan should buy more of this good. C) MU/P has increased and Ewan should buy less of this good. D) MU/P has decreased and Ewan should buy less of this good.
Which of the following statements is incorrect?
a. The Federal Reserve Open Market Committee determines fiscal policy actions for the Congress. b. The Board of Governors of the Federal Reserve is appointed, not elected. c. The Federal Reserve System was designed to be independent of the executive branch of the government. d. The chairman of the Board of Governors serves a four-year term. e. The Federal Reserve districts are distributed geographically to serve the particular interests of each region.
The law of diminishing marginal returns is the same as increasing returns to scale
a. True b. False Indicate whether the statement is true or false
A price floor that sets the price of a good above market equilibrium will cause
a. a decrease in quantity demanded of the good. b. an increase in quantity supplied of the good. c. a surplus of the good. d. all of the above.