This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose the price of leather used to produce shoes increases. The higher price of leather ________ ... (Read 193 times)

justinmsk

  • Hero Member
  • *****
  • Posts: 524
on: Jun 30, 2018
Suppose the price of leather used to produce shoes increases. The higher price of leather ________ the supply of shoes, and the supply curve of shoes ________.
 
  A) does not change; does not shift
  B) decreases; shifts rightward
  C) increases; shifts rightward
  D) increases; shifts leftward
  E) decreases; shifts leftward

Question 2

Why does the money supply increase when the Fed buys a bond but does not change when a business buys a bond?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

af

  • Sr. Member
  • ****
  • Posts: 356
Reply #1 on: Jun 30, 2018
Answer to Question 1

E

Answer to Question 2

The reserves in the banking system increase when the Fed buys bonds but remain unchanged when a business buys bonds. When a business buys bonds, a check is written on one bank and deposited in another. The reserves of one bank increase but fall in the other, so there is no net change. When the Fed buys bonds, reserves increase in a bank but don't decrease anywhere else since the Fed can add to the reserves of a member bank.


justinmsk

  • Member
  • Posts: 524
Reply 2 on: Jun 30, 2018
Excellent

elyse44

  • Member
  • Posts: 319
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

How genes produce proteins that determine traits in a simple dominant-recessive relationship. How genes produce proteins that determine traits in a simple dominant-recessive relationship.
Furchgott's discovery that endothelial cells produce a vasodilating substance. Furchgott's discovery that endothelial cells produce a vasodilating substance.
Four different spindle attachments produce four second-division segregation patterns Four different spindle attachments produce four second-division segregation patterns
Weak valve springs will produce a normal reading at idle, but as engine speed increases, the needle ... Weak valve springs will produce a normal reading at idle, but as engine speed increases, the needle ...
The areas in which reading-associated increases in activity were observed in the fMRI study of ... The areas in which reading-associated increases in activity were observed in the fMRI study of ...
What's Your BMI? As your BMI increases, you are more likely to be overweight or obese What's Your BMI? As your BMI increases, you are more likely to be overweight or obese
Video: Muscle cell structures - actin, myosin and titin filaments

For a complete list of videos, visit our video library