Suppose,while Cleaning Out Its Closets,a Worker at the Federal Reserve

question 54

Multiple Choice

Suppose,while cleaning out its closets,a worker at the Federal Reserve bank branch in Memphis discovers a painting of Elvis (medium: acrylic on velvet) that used to grace the walls of the conference room. Suppose further that,at a public auction,the bank sells the painting for $19.95. This sale will cause ________ in the monetary base,everything else held constant.

• A)an increase of $19.95
• B)an increase of more than $19.95
• C)a decrease of $19.95
• D)a decrease of more than $19.95

---

Definitions:

Blue Price

This term does not have a widely recognized definition and could refer to specific market jargon or a particular pricing strategy.

Ambrosia

In Greek mythology, ambrosia is considered the food or drink of the gods, often depicted as conferring longevity or immortality upon whoever consumed it.

Fixed Coefficients

A term used in production and economics to describe technologies where inputs are used in strict fixed proportions to produce an output.

Production Possibility Set

A graph or curve depicting all maximum output possibilities for two or more goods, given a set of inputs.