According to the Application, the Fed started paying interest to banks on reserves. Since this change has occurred
A) all total reserves are now excess reserves.
B) total reserves are finally equal to required reserves.
C) required reserves now exceed total reserves.
D) total reserves now far exceed required reserves.
D
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
In this graph, what would cause price to rise?
a. demand shifting further left than supply
b. supply shifting further left than demand
c. supply shifting right as demand shifts left
d. supply remaining constant as demand shifts left
Jack and Jill both decide to go to a movie with free tickets. We know that
A. the cost of going to the movie is greater for the one who had more choices to do other things. B. neither bears an opportunity cost because the tickets were free. C. both bear the same opportunity cost since they are doing the same thing. D. both bear an opportunity cost since they could have done other things instead of watching a movie
Assume a purely competitive decreasing-cost industry is initially in long-run equilibrium but then there is a decrease in consumer demand. After all economic adjustments to this new situation have taken place, product price will be:
A. Higher, but total output will be lower B. Lower, and total output will be lower C. Higher, and total output will be higher D. Lower, but total output will be higher