If the Fed conducts open market sales, the equilibrium value of money decreases and the equilibrium price level increases
a. True
b. False
Indicate whether the statement is true or false
False
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In the above figure, if household consumption is positively related to household income, then an increase in household income will
A) shift the line rightward. B) shift the line leftward. C) make the line positively sloped. D) cause a movement along the line.
Which of the following prices could represent Eli's willingness to pay for a baseball glove if he observed the market price of $43 and decided not to buy one?
A. $37 B. $45 C. $50 D. None of these could represent Eli's willingness to pay.
A 1986 study of segregation on early 20th century U.S. streetcars found that the primary source of racial segregation on streetcars was
a. a longstanding tradition of racial segregation. b. policies implemented by the owners of streetcars. c. laws passed by the government. d. threats by white people to boycott the streetcars if they were forced to sit with black people.
In a competitive market, economic profits will
A. Cause new firms to leave the market. B. Cause existing firms to expand production. C. Potentially last a long time. D. Not be possible, even in the short run.