Which of the following will increase the excess reserves of commercial banks?
a. a reduction in the reserve requirement ratio
b. an increase in the discount rate
c. the sale of government bonds by the Fed to the public
d. the sale of government bonds by the Treasury to the public
A
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When the price of rice rises,
A) the market quantity supplied of rice increases. B) the market supply of rice increases. C) the market quantity of rice demanded decreases. D) Both A and C are true. E) Both A and B are true.
In the figure above, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month. The loss of producer surplus
A) is smaller than the gain in consumer surplus. B) is larger than the gain in consumer surplus. C) is the same size as the gain in consumer surplus. D) could be smaller than, larger than, or the same size as the gain in consumer surplus.
Managers should engage in an activity if, on average, it can be done for less that a dollar per unit
Indicate whether the statement is true or false
The relationship according to which the perceived change in any stimulus varies according to the size of the change measured as a proportion of the original stimulus is known as:
A. the Weber-Fechner law. B. the representative heuristic. C. status quo bias. D. regression to the mean.