If the Fed paid a lower interest rate to banks on their reserves at the Fed, the money supply would tend to rise
a. True
b. False
Indicate whether the statement is true or false
True
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If a country's population increases while the supply of farmland is fixed, then farmland prices will most likely
a. decrease because people spend more money on food and have less to spend on rent b. increase because the marginal revenue product of food decreases c. decrease because farmers must cultivate less productive foods such as potatoes d. increase because the marginal revenue product of land increases e. stay the same because there is no relation between farm land prices and population
A nonexcludable public good is
A) rivalrous in consumption and nonexcludable B) nonrivalrous in consumption and excludable C) nonrivalrous in consumption and nonexcludable D) rivalrous in consumption and excludable E) none of the above
Microeconomics examines the
A) total household expenditures. B) behavior of the economy as a whole. C) aggregate business spending. D) decision making undertaken by individual households.
A change in the slope of a budget line reflects:
A. a change in the marginal rate of substitution. B. a change in the consumer's preferences. C. a change in consumer income. D. a change in the relative prices of the two goods.