Which of the following statements best represents the law of supply?
A) Price and quantity supplied are inversely related.
B) Price and quantity supplied are directly related.
C) Price and quantity supplied are inversely related, ceteris paribus.
D) Price and quantity supplied are directly related, ceteris paribus.
E) Price and supply are directly related, ceteris paribus.
D
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If the Fed carries out an open market operation and buys U.S. government securities, the federal funds rate ________ and the quantity of reserves ________
A) rises; increases B) falls; increases C) rises; decreases D) falls; decreases E) rises; does not change
The figure above shows an education market in which the government is providing households with vouchers. In total, how much do the schools receive for a student?
A) $4,000 B) $8,000 C) $12,000 D) $16,000 E) $20,000