If the economy is inflationary, the Fed would most likely:
a. increase bank reserves by raising the discount rate.
b. increase bank reserves by buying government securities
c. decrease bank reserves by lowering the discount rate.
d. decrease bank reserves by selling government securities.
e. decrease bank reserves by lowering the legal reserve requirement.
d
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Bobby spends $100 per month on pizza and CDs. His utility from these goods is shown in the table above. The price of a pizza is $10 and the price of a CD is $20. Which of the following combinations of the two goods maximizes Bobby's utility?
A) 2 pizzas and 4 CDs B) 6 pizzas and 2 CDs C) 4 pizzas and 3 CDs D) 8 pizzas and 1 CDs
When there is a tendency for a particular product to fall out favor with additional consumers because other consumers have chosen not to purchase the product
A) negative market feedback occurs. B) positive market feedback occurs. C) the tit-for-tat strategy will begin. D) the network effect will increase.