Total expenditures can be written as C + I + G + (X ? IM)

a. True
b. False
Indicate whether the statement is true or false

True

Economics

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How does the Fed increase the level of reserves in the banking system?

A) by lowering interest rates B) by buying bonds C) by raising interest rates D) by selling bonds

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The "law" of demand can be best described by

A) people will buy things that they enjoy. B) if incomes rise, people will buy more. C) a rise in price will cause shortages. D) a fall in price will increase quantity demanded.

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