One of the characteristics of financial repression is
(a) negative real interest rates.
(b) lack of credit rationing.
(c) capital flowing to the highest rate of return.
(d) all of the above.
(e) none of the above.
A
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When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and the bank chooses not to make any loans but to hold excess reserves instead, then, in the bank's final balance sheet
A) the assets at the bank increase by $1 million. B) the liabilities of the bank decrease by $1 million. C) reserves increase by $200,000. D) liabilities increase by $200,000.
The primary monetary policy tool is reserve requirements
Indicate whether the statement is true or false
In the long run, a monopolistically competitive firm will
a. produce a greater variety of goods than do firms in other market structures b. produce a greater output level than would a perfectly competitive firm c. produce where price equals average total cost d. earn an economic profit e. suffer a loss because of its advertising budget
The "coincidence of wants" problem associated with barter refers to the fact that:
A. for exchange to occur, each seller must have a product that some buyer wants. B. money must be used as a medium of exchange or trade will never occur. C. specialization is restricted by the size or scope of a market. D. buyers in resource markets and sellers in product markets can never engage in exchange.