Open market purchases ________ reserves and the monetary base thereby ________ the money supply

The number of CDs purchased increased by 50 percent when consumer income increased by 10 percent. Assuming other factors are held constant, CDs would be classified as:

a. social goods. b. normal goods. c. Giffen goods. d. inferior goods.

Which of the following statements about tariffs is true?

A. The revenue gained from tariffs equals the total cost that tariffs impose on consumers. B. The costs of tariffs are proportionately higher for high-income groups than for low-income groups. C. U.S. consumers lose more from tariffs than U.S. producers gain. D. U.S. producers gain more from tariffs than U.S. consumers lose.