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Suppose that the market in the graph above is at an initial equilibrium price of $10 and an equilibrium quantity of 500 units. If the government decides to add a $4 per-unit tax on this good, the equilibrium price will change to:

Refer to the balance sheet above. Suppose one of Bank of America’s customers wants to transfer $1,200,000 to another bank. What problem does this present for Bank of America?

Suppose the reserve requirement is 20 percent. According to the money multiplier model, a $1 billion sale of government securities by the Fed will:

Refer to the graph below.  Suppose that the world supply curve is SW1.  Based on the balance of trade at the world price level of SW1, what is most likely going to happen to the value of the currency and what could prevent this from happening?

If average Netflix subscription is 250 million when prices are $7 a subscription and 200 million when prices are $9 a subscription, the elasticity of demand for Netflix is about:     

Which good/service can be considered being closest to having a price elasticity of demand that is perfectly price inelastic:

Fiscal deficits incurred by the government may be desirable in the short run if they:

Refer to the graph. Suppose the economy is below potential output. Where does such a point in the graph exist and what would be the most appropriate policy to return the economy to potential output?

A reduction in the federal funds rate could be caused by:

Use the 5 balance sheets in order to answer the following question: Question: Suppose that an individual took out a $1,000,000 loan from Bank of America to purchase a home. Bank of America has $0 in Central Bank Reserves and $1,000,000 in treasury bonds on its balance sheet. Suppose Bank of America borrows $1,000,000 in Central Bank Reserves from the Federal Reserve at the Discount Window to transfer $1,000,000 to Wells Fargo on behalf of the home buyer. What is a possible reason Bank of America acquired Central Bank Reserves in this manner as opposed to other means?