When the Fed sells government securities to banks, the sale
A) decreases banks' reserves.
B) increases the quantity of money.
C) creates more excess reserves.
D) increases banks' reserves.
E) increases the monetary base.
A
Economics
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A rise in the price of cabbage from $14 to $18 per bushel increases the quantity supplied from 4,000 to 6,000 bushels. The elasticity of supply is
A) 0.6. B) 0.8. C) 1.0. D) 1.6.
Economics
A decrease in government expenditure would shift the:
A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward.
Economics