The Federal Reserve cannot target both the money supply and the interest rate because it does not control
A) bank reserves.
B) money demand.
C) the discount rate.
D) open market operations.
Answer: B
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According to the law of diminishing marginal utility, which of the following is likely to be true? a. Bruce enjoys his first slice of pizza more than his fifth
b. Steve enjoys his third slice of pizza more than his second. c. Tony enjoys his second slice of pizza as much as his fifth. d. Ethan enjoys two slices of pizza as much as one slice of pizza.
Velcro is becoming more and more popular for a variety of uses, including as fasteners for shoes. What should happen to the equilibrium price and quantity for shoelaces as a result?
a. Both price and quantity will increase. b. Both price and quantity will decrease. c. Price will increase and quantity decrease. d. Price will decrease and quantity increase. e. Nothing.