The Fed's use of the interest rate it pays banks on their excess reserves
a. is a tool the Fed has used effectively over the past several decades to control the money supply.
b. is a tool that can be used to reduce the supply of money, but it cannot be used to expand it.
c. is a monetary tool that the Fed introduced in 2008
d. is a tool that could be used to expand the money supply, but it could not be used to reduce it.
C
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An indifference curve represents the collection of goods and services that an individual has no desire to consume
Indicate whether the statement is true or false
A wage differential between skilled and unskilled workers exists because skilled workers have higher marginal products than unskilled workers
a. True b. False Indicate whether the statement is true or false
According to the Keynesian model, the economy will be in equilibrium when
a. the growth of the money supply is constant over time. b. planned leakages equal planned injections. c. the government’s budget is balanced. d. the labor force is fully employed.
If the supply of product X is perfectly elastic, an increase in the demand for it will increase:
A. equilibrium quantity but reduce equilibrium price. B. equilibrium quantity, but equilibrium price will be unchanged. C. equilibrium price but reduce equilibrium quantity. D. equilibrium price, but equilibrium quantity will be unchanged.