Consumer surplus arises in a market because
A. at the current market price, quantity supplied is greater than quantity demand
B. the current market price, quantity demanded is greater than quantity supplied.
C.the market price is below what some consumers are willing to pay for the product.
D. the market price is higher than what some consumers are willing to pay for the product.
Answer: C
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The initial impact of the Fed's open market sale of government securities by the Federal Reserve is
A) an increase in the money supply by some multiple of the dollar volume of the sale. B) an increase in commercial bank deposits at the Fed. C) a fall in the money supply by some multiple of the dollar volume of the sale. D) a reduction of the commercial banking system's reserve deposits at the Fed.
The failure of the Bank of the United States in December 1930 probably intensified the banking panic for each of the following reasons except that it proved that ___
a. the Fed might fail to act as a lender of last resort. b. big banks could fail. c. New York Banks could fail. d. that Wall Street banks could fail.