Refer to Figure 5-13. The actual price of gasoline paid by consumers after the tax is implemented is ________ per gallon

Economists view normative statements as

a. prescriptive, making a claim about how the world ought to be. b. descriptive, making a claim about how the world is. c. statements about the normal condition of the world. d. pessimistic, putting the worst possible interpretation on things.

Which of the following factors can contribute to a further reduction in the money supply in addition to a massive withdrawal of cash from banks?

A. Bank purchases of Treasury bonds from the Fed B. Bank sales of government bonds to meet liquidity demands C. Banks expand the approval and granting of loans D. A decrease in the required reserve ratio