When the Fed buys federal government securities on the open market from commercial banks, then, over time, the:
a. assets of these banks fall.
b. assets of the banks stay the same.
c. assets of the banks rise.
d. liabilities of the bank rise.
e. liabilities of the bank fall.
c
Economics
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In Figure 3-7 above, the multiplier for a change in autonomous taxes is
A) 5. B) 4. C) 2.50. D) 1.
Economics
As more firms enter a perfectly competitive industry, the industry supply curve shifts
a. to the left and price falls b. to the right and price rises c. to the right and price falls d. to the left and price rises e. in an unpredictable way
Economics