If the money supply curve is vertical, an increase in bond interest rates
A) is likely to cause banks to supply more money.
B) is likely to cause banks to supply less money.
C) has no effect on the money supply.
D) is likely to cause the Federal Reserve to increase the money supply.
Ans: C) has no effect on the money supply.
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In the balance of payments, a deficit item is any transaction
A) that leads to a receipt by a resident of a country or its government. B) that leads to a payment by a resident of a country or its government. C) that is an export of a good or service. D) that makes residents of a country worse off.
Refer to the below graph of the market for low-skilled labor. Sd is the supply of domestic resident workers, and St is the total supply of labor including undocumented workers. If there are illegal immigrants in the market, how many legal residents will be employed?
A. 15M
B. 120M
C. 135M
D. 22M