Suppose banks incur heavy losses and become more cautious, increasing their demand for reserve. Make use of a graph of the loanable funds market to show how the Fed can use open market operations to maintain the same federal funds rate
What will be an ideal response?
The Fed will conduct open market purchases, increasing the supply of reserves by a sufficient amount to ensure that the federal funds rate remains at its current rate.
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
According to ________, entrepreneurship does not contribute anything of value to production
A) Milton Friedman B) Karl Marx C) Robert Lucas and Thomas Sargent D) John Maynard Keynes
Collusion:
A. occurs only when no dominant strategy is present. B. is a cooperative outcome between competitors. C. is observed, but economists cannot theoretically model it. D. is a theoretical concept that is rarely observed.
According to the Ricardian model, the source of comparative advantage is:
a. differences in labor productivity in different countries. b. differences in foreign trade policies followed by the government of various countries. c. differences in resource endowments of an economy. d. differences in the fields of research and development in a country. e. differences in the taste and preferences of the consumers in different countries.