Author Question: The Fed buys 100 million U.S. government securities from Bank of America. Bank of America's balance ... (Read 146 times)

DelorasTo

  • Hero Member
  • *****
  • Posts: 548
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

  • Sr. Member
  • ****
  • Posts: 328
Answer to Question 1

B

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

For a complete list of videos, visit our video library