Question 1 of 5 Share Facebook Twitter LinkedIn WhatsApp Email Copy Link What is consumer surplus? A. The amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it. B. The number of buyers of a good minus the number of sellers C. The number of goods for sale minus the number of goods buyers want to buy D. The amount a seller is paid minus the cost of production Submit Answer
Question 2 of 5 Share Facebook Twitter LinkedIn WhatsApp Email Copy Link Which good tends to have elastic demand? A. A good with close substitutes B. A good with many complements C. A good that is tangible D. A good with few complements Submit Answer
Question 3 of 5 Share Facebook Twitter LinkedIn WhatsApp Email Copy Link What does the Fed do to expand aggregate demand? Choose two A. Reduce the quantity of reserves B. Increase the foreign exchange rate C. Raise mortgage rates D. Increase the money supply E. Decrease the money supply F. Lower the interest rate Submit Answer
Question 4 of 5 Share Facebook Twitter LinkedIn WhatsApp Email Copy Link When the Fed decreases the money supply, what is the result? A. The aggregate demand for imports increases. B. The quantity of goods and services demanded for any given price decreases. C. The efficiency of market corrections is reduced. D. The quantity of goods and services demanded for one specific price increases. Submit Answer
Question 5 of 5 Share Facebook Twitter LinkedIn WhatsApp Email Copy Link Which methods does the Fed use to alter reserve quantities? Choose three. A. Buying bonds B. Raising the discount rate C. Selling bonds D. Selling stock shares E. Raising inflation F. Raising income tax rates Submit Answer