Which of the following is an example of an undesirable side effect of the operation of the market mechanism?

As the price of home heating oil rises, families buy less home heating oil. Hence a scatter diagram with the price of home heating oil on the vertical axis and the quantity purchased on the horizontal axis reveals a ________ relationshi

A) time-series B) linear C) negative D) positive E) cross-sectional

If the Fed were to raise the required reserve ratio,

A) excess reserves would decrease. B) excess reserves would increase. C) there would be no effect on the level of excess reserves. D) there would tend to be no effect on the nation's money supply.