When the money market is drawn with the value of money on the vertical axis, if the Fed sells bonds then
a. the money supply and the price level increase.
b. the money supply and the price level decrease.
c. the money supply increases and the price level decreases.
d. the money supply increases and the price level increases.
b
You might also like to view...
If the combination of goods consumed at point C is preferred to combination D then
A) point C is on a higher indifference curve. B) point C is on the same indifference cure but at a point where the vertical axis value is greater than point D's vertical axis value. C) point C is on a lower indifference curve. D) point C is on the same indifference curve but at a point where the horizontal axis value is greater than point D's horizontal axis value.
A factor not indicated by the GDP measurement that would tend to raise the standard of living for the same GDP is a(n)
a. increase in population size. b. rise in the price level. c. jump in external costs. d. shift toward production of consumer-oriented goods and services.
Which statement is false?
A. Short-run cost assumes a fixed capital size, while long-run cost includes all possible capital levels in determining cost. B. Short-run total cost can never be less than long-run total cost at any given output level. C. Short run ATC and long run ATC are never equal except at the minimum point on the long run ATC curve. D. Long-run marginal cost never intersects long-run average cost as long as increasing returns to scale are present.
Credit cards are part of the M2 money supply and are valued at the maximum credit limit of the cardholder.
Answer the following statement true (T) or false (F)