Which of the following is correct?
a. Federal Reserve purchases of securities will increase the reserves available to commercial banks.
b. Federal Reserve purchases of securities exert upward pressure on interest rates in the short run.
c. The Federal Reserve System determines the ratio of currency held by the public to the money supply (M1).
d. Federal Reserve purchases of securities will decrease the reserves available to commercial banks.
A
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Bauxite is used for making aluminum. Which of the following will happen if bauxite prices fall, assuming all else equal?
A) The labor demand curve of aluminum manufacturers will shift to the right. B) The labor demand curve of aluminum manufacturers will shift to the left. C) Aluminum manufacturers will move to a higher point along their labor demand curves. D) Aluminum manufacturers will move to a lower point along their labor demand curves.
Exhibit 5-9 Supply and Demand Curves for Good X
?
As shown in Exhibit 5-9, the $200 per unit tax on Good X raises tax revenue per time period totaling:
A. $10,000. B. $20,000. C. $30,000. D. $60,000.