If the Fed buys a U.S. government bond from a member of the public,
a. the banking system has more reserves and the money supply tends to grow.
b. the banking system has less reserves and the money supply tends to grow.
c. the banking system has more reserves and the money supply tends to fall.
d. the banking system has less reserves and the money supply tends to fall.
a
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During 2012, a country has consumption expenditures of $3.0 trillion, investment expenditures of $1.5 trillion, government expenditure of $1.5 trillion, exports of $1.0 trillion, and imports of $1.5 trillion
Aggregate expenditure for the country is A) $5.5 trillion. B) $6.5 trillion. C) $6.0 trillion. D) $8.5 trillion. E) $7.0 trillion.
Why are people more inclined to pick up a dime off the pavement in a parking lot, but not so inclined to dig three feet into the earth for a previously-buried dime?
A) The entrepreneurial spirit of Americans is gone. B) They don't know the value of the dollar—or dime—anymore. C) They weigh the expected additional costs and benefits, and choose accordingly. D) People haven't taken enough economics in college.