A Simple Supply Curve Shows That an Increase in the Price

question 241

Multiple Choice

A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to:

• A)Decrease.
• B)Increase.
• C)Remain constant.
• D)Fluctuate randomly around its equilibrium value.

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Definitions:

Fed Chairman

The leading figure of the Federal Reserve, the central banking system of the United States, responsible for monetary policy direction.

Federal Funds Market

A market where banks lend and borrow reserves from each other overnight in order to meet reserve requirements set by the central bank.

Depository Institution

A financial institution legally allowed to accept monetary deposits from consumers, such as banks and credit unions.

Federal Home Loan Bank Board

A now-defunct U.S. government agency that oversaw the Federal Home Loan Banks, which were created to support home mortgage lending and community investment.