If the Fed pursues expansionary monetary policy then
A) the money supply will decrease, interest rates will rise and GDP will fall.
B) the money supply will decrease, interest rates will fall and GDP will fall.
C) the money supply will increase, interest rates will rise and GDP will rise.
D) the money supply will increase, interest rates will fall and GDP will rise.
Answer: D
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Which of the following are reported as liabilities on a bank's balance sheet?
A) reserves B) checkable deposits C) consumer loans D) deposits with other banks
Milky Moo and Mega Cow are the only sellers of milk. Milky Moo's supply function is QsMMoo = 12P - 6 at prices above $0.50 and zero at prices below $0.50. Mega Cow's supply function is QsMCow = 9P - 3 at prices above $0.33 and zero at prices below $0.33. At a price of $0.45:
A. Milky Moo is the only supplier of milk. B. Mega Cow is the only supplier of milk. C. both Milky Moo and Mega Cow supply milk. D. neither Milky Moo nor Mega Cow supply milk.
If the country is heading into a recession, the Fed might be able to counteract this by
A. increasing the discount rate. B. carrying out an expansionary fiscal policy. C. forcing the government deficit to decrease. D. acting to increase the money supply.
Figure 9.6 represents the market for health insurance. Suppose there are two types of consumers, low-cost consumers with $2,000 average medical expenses per year, and high-cost customers with $4,000 average medical expenses per year. The insurance companies estimate that 40% of its customers are high-cost type. The uninformed side(s) of the market is (are):
A. customers. B. insurance companies. C. both customers and insurance companies. D. neither customers nor insurance companies.