A consumer is willing to pay $5 for a ball. If the market price of the ball increases from $2 to $3, consumer surplus will _____

If the demand curve for a good is unit elastic within a specific price range, this implies that within that price range the

a. consumers do not react to a change in price b. quantity demanded remains unchanged c. good has no substitutes d. good has no complements e. percentage change in the quantity demanded equals the percentage change in price

If the FOMC orders a purchase of government securities from member banks, where does the FOMC get the money to pay for the securities?

a. It creates money to pay for the securities by adding the purchase amount to the banks' reserves. b. It pays for the securities with new Federal Reserve notes. c. It borrows the necessary funds from the Treasury. d. It auctions off part of the securities it already owns.