When the Fed purchases government securities, it:
a. increases banks' reserves and makes possible an increase in the money supply.
b. decreases banks' reserves and makes possible a decrease in the money supply.
c. automatically raises the discount rate.
d. uses discounting operations to influence margin requirements.
e. has no effect on either the money supply or the discount rate.
a
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A market consequence of a price floor is that
a. consumers will discover that there aren't sufficient quantities of the good available at the floor price b. producers will reduce the quantity of good they supply c. some rationing mechanism, such as ration coupons, must be created d. an excess supply of the good results e. an excess demand for the good results
Which of the following is explained by the law of diminishing marginal utility?
A) The marginal utility of Isabel's second bottle of Coca-Cola is greater than the marginal utility of her third bottle of Coca-Cola. B) The marginal utility of Isabel's second bottle of Coca-Cola is greater than the marginal utility of her third pretzel. C) The marginal utility of Isabel's second bottle of Coca-Cola is greater than the marginal utility of her friend Margie's third pretzel. D) The total utility of one bottle of Coca-Cola is greater than the total utility of two bottles of Coca-Cola.