If a bank purchases government securities rather than lends funds, the:
a. M2 money supply does not rise.
b. M2 money supply rises, but not by as much as when the funds are lent.
c. M2 money supply rises by more than would be the case if the funds were lent.
d. M2 money supply rises by the same amount as if they were lent.
.D
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Bill currently uses his entire budget to purchase 5 cans of Pepsi and 3 hamburgers per week. The price of Pepsi is $1 per can, the price of a hamburger is $2, Bill's marginal utility from Pepsi is 4, and his marginal utility from hamburgers is 6
Bill could increase his utility by: A) increasing Pepsi consumption and reducing hamburger consumption. B) increasing hamburger consumption and reducing Pepsi consumption. C) maintaining his current consumption choices. D) We do not have enough information to answer this question.
When we speak of the national debt, we refer to the federal government debt only
a. True b. False Indicate whether the statement is true or false