A household consists of only related family members like a father, mother, and children and not unrelated members like two students sharing a rented apartment

If the Fed sells a T-bill to a commercial bank, how will this affect the money supply?

a. It will increase the money supply. b. It will increase bank reserves. c. It will decrease the money supply. d. It will have no effect on the money supply.

Which statement about inflation is correct?

A.  Families are always hurt by inflation B.  Inflation "subsidizes" those who receive relatively fixed money income C.  The redistributive effects of inflation are arbitrary with respect to people and groups in society D.  Inflation will decrease the real value of property assets and increase the real value of fixed- value assets