According to this Application, the Fed injected large amounts of reserves into banks during the 2008 financial crisis. The Fed needs to make sure that, in the long run, banks do not loan out too many of these reserves or the result will be

A) additional unemployment. B) higher inflation.
C) higher interest rates. D) a smaller money multiplier.


B

Economics

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Governments can eliminate market surpluses through the imposition of price floors.

Answer the following statement true (T) or false (F)

Economics

Suppose that over the next few years the demand for dancing to country and western music decreases. Hence, at country and western dance clubs the equilibrium price of admission ________ and the equilibrium quantity of dancing ________

A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases E) does not change; decreases

Economics

The table above gives costs at Jan's Bike Shop. Unfortunately, Jan's record keeping has been spotty. Each worker is paid $100 a day. Labor costs are the only variable costs of production. What is the total cost of producing 50 bikes?

A) $100 B) $200 C) $300 D) $400

Economics

Applying elementary economics, mismatch unemployment should fall when relative wages

A) rise. B) fall. C) are more flexible. D) are less flexible.

Economics