Economists study the link between money and inflation because:
A. they want to understand how to keep inflation low and stable.
B. the Fed needs to increase the money supply as prices increase.
C. as prices increase money becomes more valuable.
D. economists believe that inflation in the 3-6% range is healthy for an economy.
Answer: A
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Which of the following correctly identifies an argument against globalization?
A) Globalization limits the bundle of goods and services available in smaller countries. B) Globalization leads to an exploitation of developed countries. C) Globalization can lead to a loss of indigenous culture and tradition. D) Globalization works against free trade.
A rule that specifies the highest price that a regulated firm is permitted to set is called
A) rate of return regulation. B) price cap regulation. C) maximum price regulation. D) average/marginal cost pricing.
Which of the following is most likely to be common property?
A) a cat in a house B) farm raised catfish in Alabama C) tuna in the Pacific Ocean D) cattle in a Texas ranch
Darcy sells a government security worth $4,600,000 to the Federal Reserve Bank of Kansas City. She deposits these funds in her checking account to the First Commerce Bank. Her checking account had a $150,000 balance before the sale of the security. The reserves of the First Commerce Bank would:
A. increase by $4,750,000. B. increase by $4,600,000. C. decrease by $4,450,000. D. decrease by $4,600,000.