Which of the following is an appropriate policy for the Fed to pursue if it wants to increase the money supply?
A) raise the reserve requirement
B) raise the discount rate
C) buy U.S. Treasury bills
D) lower taxes
Answer: C
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The figure above shows the market for private elementary school education in Chicago. There is no external cost of private elementary education. If the government does not intervene in this market, the equilibrium price of private education is
A) $12,000. B) $16,000. C) $20,000. D) $4,000. E) $6,000.
How has the growing popularity of factory outlet stores affected the market for clothing at retail department stores?
A) the supply curve for clothing at retail department stores shifts to the left. B) the demand curve for clothing at retail department stores shifts to the right. C) the supply curve for clothing at retail department stores shifts to the right. D) the demand curve for clothing at retail department stores shifts to the left.