The supply of reserves __________ when the federal funds rate __________
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) does not change; changes
E
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Which of the following features is characteristic of monopolistic competition?
a. many large producers b. homogeneous products c. differentiated products d. No individual producer has any influence on the market price.
Which diagram in Figure 9.4 shows what happens to investment if the government decides to make housing cheaper by lowering interest rates?
Which diagram in Figure 9.4 shows how investment responds to the expectation that the economy is about to go into a period of fast growth, causing firms to expect increased sales?
A. A. B. B. C. C. D. D.
If Uber is required to start paying the value-added tax (VAT) in Great Britain, this will have the potential to raise the equilibrium price in this market and, therefore, decrease efficiency. This would have a tendency to
A) decrease producer surplus and decrease deadweight loss. B) decrease consumer surplus and increase deadweight loss. C) increase consumer surplus and increase producer surplus. D) maximize consumer surplus and minimize producer surplus.
Decreasing government spending and decreasing the minimum wage are two policies that both work to decrease the price level.
Answer the following statement true (T) or false (F)