An open-market purchase of securities by the Fed results in ________ in reserves and ________ in the supply of money.
A. an increase; an increase
B. a decrease; an increase
C. an increase; a decrease
D. a decrease; a decrease
Answer: A
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All of the following are flow variables EXCEPT
A) saving. B) capital goods. C) consumption. D) investment.
Your textbook authors argue that the redemption efforts to free Sudanese slaves
A) generally succeeded until the government stepped in and created unintended shortages. B) worked poorly because slave surpluses became rampant. C) unintentionally increased profitability and slave supply. D) proved that underground markets do not coordinate the plans of participants.
Which of the following is true regarding the measurement of GDP?
A) Wages and profit income are used in the income approach to GDP. B) Wages and consumption are used in the expenditure approach to GDP. C) Consumption and investment are used in the income approach to GDP. D) Government expenditure is only counted in the income approach to GDP. E) Investment and wages are expenditures, and are therefore are used in the expenditure approach to GDP.
The price of an airline ticket rises as the amount of time between purchase and flight departure gets smaller. The airlines base the policy on the assumption that
a. consumers are not aware of airline prices. b. consumer demand is unrelated to prices. c. consumer demand becomes more elastic as departure time approaches. d. consumer demand becomes more inelastic as departure time approaches.