MIDDLESEX COLLEGE ECO 201 - 01: SPRING 2023. HOMEWORK #2. DUE 4/26/2023 C. below equilibrium. D. More information is needed. 18. Which of the following is the basic economic policy function of the Federal Reserve Banks? A. holding the deposits or reserves of commercial banks B. acting as fiscal agents for the federal government C. controlling the supply of money D. collecting or clearing checks among commercial banks 19. If investment decreases by $25 billion and the economy's MPC is 0.5, the aggregate demand curve will shift leftward by $50 billion at each price level. rightward by $25 billion at each price level. rightward by $50 billion at each price level. leftward by $75 billion at each price level. 20. If inventories unexpectedly rise, then production sales and firms will respond by output. A. trails; expanding B. trails; reducing C. exceeds; expanding D. exceeds; reducing 21. Suppose that real domestic output in an economy is 144 units, the quantity of inputs is 12, and the price of each input is $4. The level of productivity is 24. 144. 10. D. 12. 22. The M2 money supply includes A. stock certificates. B, currency in bank vaults. C. the cash value of life insurance policies. D. individual shares in money market mutual funds 23. Suppose that real domestic output in an economy is 120 units, the quantity of inputs is 50, and the price of each input is $6. The per-unit cost of production in the economy described is A. $4.00 B. $25. C. $2.5 D. $20. Page 3 of 7