When the Fed buys $100 million of securities from a commercial bank, the

A) monetary base increases.
B) money supply decreases.
C) bank's reserves decrease.
D) required reserve ratio decreases.
E) bank is risking its depositors' money.

A

Economics

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The difference between what can be produced and consumed without specialization and trade and with specialization and trade is called:

a. comparative advantage. b. a tradeoff. c. marginal cost. d. opportunity cost. e. gains from trade.

Economics

The per capita real GDP in Sri Lanka is likely to be lower than the United States because Sri Lanka's economy is characterized by:

a. a more equitable income distribution system. b. a high population growth. c. a low regard for political freedom. d. a higher level of consumption spending. e. a high budget deficit.

Economics