Answer: D) the money supply will decrease.
When the Federal Reserve sells a government security to a bond dealer, which transmits payment from a transactions deposit account at a bank
A) the cash of the Federal Reserve will decrease.
B) the net worth of the commercial bank will decrease.
C) the loans of the commercial bank will increase.
D) the money supply will decrease.
Economics
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Which of the following statements would be represented by a backward-bending labor supply curve?
a. A $50,000-a-year professor works more hours than a $20,000-a-year professor. b. The CEO of a major computer manufacturer works more hours than the union workers. c. The owners of a successful business work fewer days than do their employees. d. Hospital janitors work fewer hours than does the chief of obstetrics. e. High-ranking executives are more likely to work past 5:00 p.m. than are middle managers.
Economics
When the price of a bracelet was $28 each, the jewelry shop sold 128 per month. When it raised the price to $32 each, it sold 112 per month. Using the midpoint method, the price elasticity of demand for bracelets is
a. 1.14. b. 1. c. 0.25. d. 0.13.
Economics