Which of the following would cause the U.S. money supply to expand?
a. a commercial bank using excess reserves to extend a loan to a customer
b. a commercial bank purchasing U.S. securities from the Fed as an investment
c. an increase in reserve requirements
d. an increase in the discount rate
a
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Why does the government provide public goods?
a) Private markets would not produce the efficient quantity of the good. b) Private markets would not produce any of the good. c) Private markets produce public goods less efficiently than the government. d) Private markets would charge too high a price for the good.
Which of the following statements is true?
A) Economics does not provide insights into human behavior. B) Economic reasoning tends to reduce the quality of decision making. C) Economics is concerned with money, not choices. D) Economics can be used to predict people's actions.