Which of the following will cause the U.S. money supply to expand?
a. a commercial bank uses excess reserves to extend a loan to a customer
b. a commercial bank purchases 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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Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that Joe's marginal cost of staying open per hour is $24
How many hours should Joe stay open? A) 3 hours B) 4 hours C) 5 hours D) 6 hours
If a country voluntarily agrees to have its companies import more goods from another country, the country has
A) a voluntary import expansion (VIE) agreement. B) a voluntary restraint agreement (VRA). C) a mandated tariff. D) a mandated agreement.