If, after a deposit outflow, a bank needs an additional $3 million to meet its reserve requirements, the bank can
A) reduce deposits by $3 million.
B) increase loans by $3 million.
C) sell $3 million of securities.
D) repay its discount loans from the Fed.
C
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In a Dutch auction, the higher the bid, the ________ the surplus and the ________ chance of winning
A) higher; lower B) lower; higher C) higher; higher D) lower; lower
A consol paying $20 annually when the interest rate is 5 percent has a price of
A) $100. B) $200. C) $400. D) $800.
A pretzel-stand owner in Chicago hires workers to make hot pretzels and sell them to customers. If the firm is competitive in both the market for pretzels and in the market for pretzel-makers, then it has
a. some control over both the price of pretzels and the wage it pays to its workers. b. no control over the price of pretzels but some control over the wage it pays to its workers. c. some control over the price of pretzels but no control over the wage it pays to its workers. d. no control over either the price of pretzels or the wage it pays to its workers.
Which of the following is an example of active fiscal policy?
What will be an ideal response?