Suppose your bank pays you 5 percent interest per year on your savings account. If prices increase by 5 percent per year over that time, approximately how much real value do you gain by keeping $100 in the bank for a year?

The Fed can raise the discount rate when it wants to:

a. decrease the money supply. b. increase the money supply. c. decrease the budget deficit. d. increase the budget deficit.

A monopolist faces the trade-off that a higher price leads to a lower quantity demanded. This means that the monopolist faces a(an):

a. downward-sloping demand curve. b. upward- sloping demand curve c. horizontal demand curve. d. vertical demand curve.