In the market for bank reserves, if the federal funds rate target is higher than the federal funds rate, the Fed will take action to ________ reserves
A) increase both the demand for and the supply of
B) decrease the demand for
C) decrease the supply of
D) increase the demand for
E) increase the supply of
C
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The law of increasing costs holds that the opportunity cost:
a. of a good decreases as the quantity of the good produced increases. b. of a good is proportional to the resources used in its production. c. of a good increases as more of the good is produced. d. of a good does not change with the resources used its production. e. changes as more of the good is produced.
According to Keynesians, an increase in the money supply will:
a. only increases prices. b. increase the interest rate, and decrease investment, aggregate demand, prices, real GDP, and employment. c. decrease the interest rate, and decrease investment, aggregate demand, prices, real GDP, and employment. d. decrease the interest rate, and increase investment, aggregate demand, prices, real GDP, and employment.