In open market operations, when the Fed __________ securities, bank reserves __________

An example of a nontariff barrier is a:

A) limit on the total number of Honda automobiles imported from Japan. B) regulation specifying that each imported Honda automobile must meet certain emission exhaust guidelines. C) tax of $500 on each Honda automobile produced in the United States. D) subsidy from the Japanese government of $500 for each Honda automobile imported into the United States.

If some consumers think that two detergents have differing qualities, such as brand-name vs. private label detergents, wheres other consumers know that the detergents are identical, then the detergent producer can

A) reduce its costs. B) engage in a special type of price discrimination. C) avoid moral hazard. D) None of the above.