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Author Question: The Fed buys 100 million U.S. government securities from Bank of America. Bank of America's balance ... (Read 51 times)

DelorasTo

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on: Jun 29, 2018
The Fed buys 100 million U.S. government securities from Bank of America. Bank of America's balance sheet shows this transaction as ________ in total assets and ________ in reserves.
 
  A) no change; a 100 million decrease
  B) no change; a 100 million increase
  C) a 100 million increase; no change
  D) a 100 million increase; a 100 million increase
  E) a 100 million decrease; a 100 million decrease

Question 2

In the figure above, if the firm is regulated using an average cost pricing rule, the consumer surplus created is equal to the area of
 
  A) ABG.
  B) BEFG.
  C) BCFG.
  D) BCE.
  E) None of the above because there is no consumer surplus created.


Benayers

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

A


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DelorasTo

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Reply #2 on: Jun 29, 2018
Correct answers!


Benayers

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Reply #3 on: Jun 29, 2018
Great! Please up vote :D


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