In which of the following situations is expansionary monetary policy most effective?
A. The Fed raises the reserve requirement.
B. The Fed sells more securities.
C. The Fed raises the discount rate.
D. Banks are willing to lend excess reserves.
Answer: D
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Which of the following has been a problem faced by the FDIC in its provision of federal deposit insurance?
A) a relatively low number of bank failures each year, which has reduced the need for deposit insurance B) moral hazard arising from the tendency for the highest-risk banks to be those most interested in obtaining deposit insurance in the first place C) adverse selection arising from the tendency for banks to take on more risk after they receive deposit insurance D) moral hazard arising from the tendency for banks to take on more risk after they receive deposit insurance
The supply curve of a price-taker firm in the short run is the:
a. firm's average variable cost curve. b. portion of the firm's average total cost curve that lies above average variable cost curve. c. portion of the firm's marginal cost curve that lies above average variable cost curve. d. firm's marginal revenue curve.
In accordance with the law of supply, both individual and market supply curves are drawn:
A. horizontal. B. vertical. C. downward-sloping. D. upward-sloping.
Third-party payers for medical care include all of the following EXCEPT
A. Medicaid. B. employer-provided medical insurance. C. payments from the patient's savings. D. Medicare.