Cities with diverse economies generally do better in tough economic times for all of the following reasons EXCEPT 1. diverse economies generally emerge in business-friendly areas.
2. having many industries assures that housing prices will remain affordable.
3. if one industry does not do well, others can support local businesses.
4. an economically diverse city will attract people with a variety of professional skills.

Explain whether each of the following events increases or decreases the money supply. a. the fed buys bonds in open-market operations. b. the fed reduces the reserve requirement. c. the fed increases the interest rate it pays on reserves. d. citibank repays a loan it had previously taken from the fed. e. after a rash of pickpocketing, people decide to hold less currency. f. fearful of bank runs, bankers decide to hold more excess reserves. g. the fomc increases its target for the federal funds rate.