Open market sale will result in:
A) increase in bank reserves and a decrease in the federal funds rate.
B) increase in bank reserves and an increase in the federal funds rate.
C) decrease in bank reserves and a decrease in the federal funds rate.
D) decrease in bank reserves and an increase in the federal funds rate.
D
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Suppose the official gold value of the Brazilian real changes from 457 reals per ounce to 528 reals per ounce. We can then say that:
a. the Brazilian real has been devalued. b. the Brazilian economy is expected to experience rapid inflation. c. gold has been devalued. d. the Brazilian real has appreciated in value. e. gold is now cheaper to purchase in Brazil than it was before.
If, at the current price, there is a shortage of a good, then
a. sellers are producing more than buyers wish to buy. b. the market must be in equilibrium. c. the price is below the equilibrium price. d. quantity demanded equals quantity supplied.