When the Fed purchases government bonds it _____ reserves and ____ the money supply.
A) decreases; increases
B) increases; decreases
C) decreases; decreases
D) increases; increases
Ans: D) increases; increases
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What problem are mechanism designers attempting to overcome when they "design mechanisms" to provide public goods?
What will be an ideal response?
A concentration ratio measures
A) the average size of the firms in the industry. B) the sales of the three largest firms in the industry minus the costs of these three largest firms in the industry. C) the share of industry sales accounted for by the largest firms in the industry. D) the excess capacity found in a particular oligopolistic industry.
Refer to the information provided in Figure 34.3 below to answer the question(s) that follow.
Figure 34.3Refer to Figure 34.3. If the British price level decreases, the supply of pounds will
A. shift from S1 to S0. B. shift from S0 to S2. C. shift from S1 to S2. D. not change.
The aggregate demand curve is the relationship between the:
A. price level and the distribution of real domestic output. B. price level and the purchasing of real domestic output. C. price level and the sales of producers. D. real domestic output bought and the real domestic output sold.