If the Fed raises the discount rate, what happens to reserves and the money supply?

a. Reserves increase and the money supply decreases.
b. Both increase.
c. Reserves decrease and the money supply increases.
d. Both decrease.

D

Economics

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Refer to the below graph of the market for wheat. The government adopts a price support program for wheat, and supports the wheat price at P2. The area of 0P2AQ1 would measure the:


A. Total amount received by wheat farmers

B. Total profits of wheat farmers

C. Amount the government will pay to wheat farmers

D. Amount private buyers of wheat will pay to wheat farmers

Economics

In the market for labor, the demand function describes

A. the output of workers who are paid a given wage. B. the demand for the firm's output. C. the number of workers who are willing to work at each wage. D. the number of workers a firm is willing to hire at each wage.

Economics