Open market sale of government securities results in:
A) an increase in bank reserves.
B) a decrease in bank reserves.
C) a decrease in interest rates.
D) none of the above.
B
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A narrow definition of monopoly is that a firm is a monopoly if it can ignore
A) government antitrust laws. B) the pricing decisions of firms that produce complementary products. C) the actions of all other firms. D) the pricing decisions of its suppliers.
A government policy that would raise the rate of productivity growth is
A) shifting infrastructure expenditures to the private sector. B) taxing expenditures on research and development. C) reducing the government budget surplus. D) improving human capital development.
Which of the following is the most efficient way to reduce pollution emissions?
a. emission standards that cap allowable pollution b. government pollution charges or taxes c. legislated regulations limiting the quantity of emissions allowed by each firm d. enforcement of property rights, when those rights are well-defined and transaction costs are low
Which of the following CANNOT be true at any output along a perfectly competitive firm's short-run supply curve?
A. Marginal cost is greater than average total cost. B. Marginal cost is greater than average variable cost. C. Average variable cost is greater than marginal cost. D. Average total cost is greater than marginal cost.