The interest rate that the Fed pays on reserves acts as a ceiling on the federal funds rate
Indicate whether the statement is true or false
False
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Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point d?
A) a decrease in income B) an increase in the relative price of a soft drink C) a decrease in the relative price of a soft drink D) a decrease in the price of bottled water
Why are firms in monopolistic competition unable to make an economic profit in the long run?
What will be an ideal response?
What is a crawling peg and how does it work?
What will be an ideal response?
When unemployment insurance benefits exceed the wages a worker could earn when employed, the worker will have an incentive to:
A. have his/her unemployment insurance benefits cancelled. B. decrease his/her reservation price. C. remain unemployed longer than otherwise. D. accept the first job offered.