At the federal funds market equilibrium,
A) both the federal funds rate and the total quantity of reserves tend to rise automatically.
B) both the federal funds rate and the total quantity of reserves tend to fall automatically.
C) the equilibrium quantity of reserves demanded is equal to the equilibrium quantity of reserves supplied by the Fed.
D) the equilibrium quantity of reserves demanded exceeds the equilibrium quantity of reserves supplied by the Fed.
C
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If we assume that government borrowing crowds out private investment, then future generations will have a smaller capital stock. Ricardo's view is that this will not be the case, because people are forward looking. Do you agree?
What will be an ideal response?
Which of the following statements about monopoly is most accurate?
a. The monopolist has no incentive to produce efficiently. b. Regardless of what is produced, the monopolist will use too many resources. c. A monopolist has no incentive to keep costs down. d. The monopolist "understocks" the market and charges too high a price.
Answer the following statement(s) true (T) or false (F)
1. Small, medium, and large taxes all affect deadweight loss equally. 2. A large increase in tax can reduce the quantity exchanged to the point where there is very little tax revenue raised. 3. Subsidies create welfare gains. 4. Price ceilings create deadweight losses. 5. Deficiency payment programs are designed to help poor teachers.
Refer to the table shown to answer the question. Between $2 and $2.20, demand is:PriceQuantity Demanded$1.60130$1.80120$2.00110$2.20100$2.4090$2.6080
A. elastic. B. inelastic. C. unit elastic. D. perfectly elastic.