When the Fed sells U.S. government securities to a member bank, the immediate effect on that bank's balance sheet is a(n):
a. decrease in assets and an increase in liabilities
b. increase in assets and a decrease in liabilities.
c. increase in both assets and liabilities.
d. decrease in both assets and liabilities.
e. change in the type of assets the bank is holding, but no change in liabilities.
e
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Refer to the scenario above. Maria should submit a bid of ________
A) $300 B) $150 C) $200 D) $250
Quotas, such as limiting the amount of residential water use during a drought, restricts an individual's preference set and
A) reduces utility because an individual cannot consume as much as they would without the quota. B) increases utility because quotas restrict output and raise profits for the water company. C) reduces utility because an individual is forced to substitute to other goods. D) does not affect overall utility.