During the Christmas shopping season, the demand for money increases significantly. To offset the increase in money demand, the Fed must ________ the money supply, which will put ________ pressure on nominal interest rates.
A. decrease; downward
B. increase; upward
C. decrease; upward
D. increase; downward
Answer: D
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The use of vouchers for education
A) decreases the demand for education and increases the equilibrium quantity. B) increases the demand for education and increases the equilibrium quantity. C) increases the deadweight loss for those who can't afford schooling. D) decreases the quantity provided to the efficient level. E) decreases the demand for education and decreases the equilibrium quantity.
Risk that is common to all assets of a certain type is referred to as
A) systematic risk. B) unsystematic risk. C) idiosyncratic risk. D) structural risk.
A risk-averse individual prefers
A) the utility of expected income of a risky gamble to the expected utility of income of the same risky gamble. B) the expected utility of income of a risky gamble to the utility of expected income of the same risky gamble. C) outcomes with 50-50 odds to those with more divergent probabilities, no matter what the dollar outcomes. D) outcomes with higher probabilities assigned to more favorable outcomes, no matter what the outcomes are. E) outcomes with highly divergent probabilities so that one of the outcomes is almost certain.
When Costa Rica's resources are not fully employed, then relative to its production possibilities curve, the point representing its production position is located
a. somewhere outside (exterior to) the curve b. somewhere along the curve because it still has choice among those production possibilities combinations c. somewhere inside (interior to) the curve d. on a new production possibilities curve that is closer to the origin e. on a new production possibilities curve that is further from the origin