The initial impact of the Fed's open market sale of government securities by the Federal Reserve is
A) an increase in the money supply by some multiple of the dollar volume of the sale.
B) an increase in commercial bank deposits at the Fed.
C) a fall in the money supply by some multiple of the dollar volume of the sale.
D) a reduction of the commercial banking system's reserve deposits at the Fed.
Answer: D) a reduction of the commercial banking system's reserve deposits at the Fed.
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The ______________________: is the expenditure required to construct the building today, replicating it in exact detail.
Fill in the blank(s) with the appropriate word(s).
If the price is above the equilibrium price, then there is a
A) surplus, and market forces will operate to lower price. B) surplus, and market forces will operate to raise price. C) shortage, and market forces will operate to lower price. D) shortage, and market forces will operate to raise price.