U.S. monetary policy relies on the:
A. Federal Reserve System's control over taxes.
B. Federal Reserve System's control over the money supply.
C. President's control over the printing of money.
D. President's control over interest rates.
B. Federal Reserve System's control over the money supply.
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Consider the following statements:
a. Soda drinkers purchase more soda from a grocery store that sells soda at a lower price than other rival grocery stores in the area. b. Homeowners do not take steps to increase security even though they believe it is more costly to allow burglaries than to install security monitoring equipment. c. Manufacturers produce less of a particular cell phone when its selling price rises. Which of the above statements demonstrates that economic agents respond to incentives? A) a only. B) b only. C) c only. D) a and b. E) a, b, and c.
Several studies have shown promising links between green tea consumption and cancer prevention. How does this affect the market for green tea?
A) The quantity of green tea demanded decreases because this new information will increase the price of green tea. B) The green tea demand curve shifts to the right because of a change in tastes in favor of green tea. C) The green tea demand curve shifts to the left because this new information will increase the price of green tea. D) The quantity of green tea demanded increases because of a change in tastes in favor of green tea.