When banks are in need of a short-term loan to meet reserve requirements, they often borrow from another bank through the ______.
a. New York Stock Exchange
b. open market operations
c. federal funds market
d. government bonds market
c. federal funds market
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
If demand for good is very inelastic and supply for the good is very elastic a sales tax imposed on sellers will cause the price received by sellers
A) would not change very much. B) would rise by more than the amount of the tax. C) would fall by an amount of the tax. D) would fall by more than the amount of the tax.
Why do permanent tax cuts have a greater impact on consumption than temporary tax cuts?
a. Permanent tax cuts have a greater effect on expected long-run inflation. b. Permanent tax cuts are perceived as minor while temporary tax cuts are larger and more effective. c. Permanent tax cuts cause movement along the consumption function, while temporary tax cuts shift the consumption function. d. Permanent tax cuts affect expectations of long-run income more than temporary tax cuts.
When the percentage change in quantity demanded is less than the percentage change in price, ceteris paribus,
A. Elasticity is impossible to calculate. B. Demand is elastic. C. Demand is inelastic. D. Demand is unitary elastic.