After the Fed sells a government bond, which of the following is the impetus for the money supply process that follows?
a. Banks now have excess reserves.
b. Banks now have deficient reserves.
c. Banks must print money to purchase the bonds.
d. Banks now have to hold more required reserves.
e. Banks now must be regulated closely.
B
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Increased investment spending in the economy would be a possible result of
A) an increase in interest rates. B) a decrease in the money supply. C) an open market sale of bonds by the Fed. D) an open market purchase of bonds by the Fed.
The above figure shows the demand and supply curves for high-skilled and low-skilled labor. The wage rate
A) of high-skilled labor is $7.00 and of low-skilled labor is $6.00. B) of high-skilled labor is $9.00 and of low-skilled labor is $7.00. C) of high-skilled labor is $6.00 and of low-skilled labor is $4.00. D) of high-skilled labor is $9.00 and of low-skilled labor is $4.00.