If the Fed sells government securities to the general public in the open market:
A. The Fed gives the securities to the public; the public pays for the securities by writing checks that when cleared will increase commercial bank reserves at the Fed
B. The Fed gives the securities to the public; the public pays for the securities by writing checks that when cleared will decrease commercial bank reserves at the Fed
C. The public gives the securities to the Fed in exchange for a Fed check, which when deposited at commercial banks will increase their reserves at the Fed
D. The public gives the securities to the Fed in exchange for a Fed check, which when deposited at commercial banks will decrease their reserves at the Fed
B. The Fed gives the securities to the public; the public pays for the securities by writing checks that when cleared will decrease commercial bank reserves at the Fed
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In what year was the Federal Reserve System created?
a. 1790 b. 1861 c. 1879 d. 1913 e. 1935
All of the following are social insurance programs designed to attack poverty EXCEPT
A. Social Security. B. food stamps. C. temporary assistance to needy families. D. tuition assistance.
Price elasticity of demand is defined as
a. slope divided by price. b. percentage change in price divided by percentage change in quantity demanded. c. percentage change in quantity demanded divided by percentage change in price. d. the inverse of the price elasticity of supply.
Suppose that a firm produces both bottled water and carbonated soft drinks. It is cheaper for this firm to produce both goods than it would be if they were produced by two separate firms. Further, as this firm increases its production levels, the average costs of producing both bottled water and carbonated soft drinks fall. This firm experiences:
A. economies of scope and diseconomies of scale. B. both economies of scope and economies of scale. C. both diseconomies of scope and diseconomies of scale. D. diseconomies of scope and economies of scale.