Central banks get the purchasing power to buy government securities by:
a. Reducing currency in circulation.
b. Making discount loans to banks.
c. Taking loans from the government.
d. Increasing their liabilities in the form of deposits from banks.
e. None of the above.
.D
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The table above shows Mary's utility from chips and soda. Mary buys only chips and soda. Chips cost $2 per bag and soda costs $4 per six-pack. She has $20 to spend per week. To maximize her utility, Mary will buy
A) 5 sodas and 5 bags of chips. B) 3 sodas and 3 bags of chips. C) 8 sodas and 8 bags of chips. D) 6 sodas and 2 bags of chips.
The above figure shows your budget line and indifference curves. What quantities of gasoline and movie rentals would you choose?
A) 25 gallons of gasoline and 15 movie rentals B) 10 gasoline and 10 movie rentals C) 20 gallons of gasoline and 5 movie rentals D) 15 gallons of gasoline and 8 movie rentals