The reserve requirement:
A. Is the most frequently used tool by the Fed.
B. Changes required reserves but not excess reserves.
C. Does not affect the lending capacity for a bank.
D. Affects the level of bank reserves.
D. Affects the level of bank reserves.
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Refer to Goods X and Y. Suppose the consumer is at an optimum, spending all his income on good X. How are the marginal value of X and the relative price of X related at this corner solution?
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. The marginal value of X and the relative price of X must be equal. b. The marginal value of X must be less than or equal to the relative price of X. c. The marginal value of X must be greater than or equal to the relative price of X. d. There is no definite relationship between the marginal value and the relative price of X.
Refer to Figure 4-8. What is the value of producer surplus after the imposition of the ceiling?
A) $40,000 B) $100,000 C) $300,000 D) $430,000
The quantity of goods and services that can be produced by one worker or by one hour of work is known as
A) per-capita GDP. B) labor productivity. C) real domestic output. D) the labor force participation rate.
If the wage rate rises, labor's share in the total costs of a production process:
a. will increase. b. will decrease. c. may increase or decrease depending on the elasticity of demand for the product. d. may increase or decrease depending on the ease of substitution of other inputs for labor.