If the average price level in 1991 was 1.20 relative to the base year in 1986, then a dollar in 1991 bought 20 percent more goods and services than a dollar in 1986

Federal funds rate targets and reserve targets are incompatible when the Federal Reserve wants to

A) expand reserves and lower interest rates. B) expand reserves and raise interest rates. C) contract reserves and the money supply. D) contract reserves and raise interest rates.

The Law of Supply ensures that supply curves slope upward

Indicate whether the statement is true or false