A change in the reserve requirement affects:
A. The money multiplier and excess reserves.
B. Excess reserves and the discount rate.
C. The discount rate and the federal funds rate.
D. The money multiplier and the federal funds rate.
A. The money multiplier and excess reserves.
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Soda and hot dogs are complements for one another. If a shortage of carbonated water leads to an increase in the price of soda, then the
A) demand for hot dogs increases. B) demand for hot dogs decreases. C) quantity of hot dogs demanded increases. D) quantity of hot dogs demanded decreases. E) More information is needed to determine if the demand increases or decreases.
With respect to the classical labor market analysis, it is not assumed that
a. firms have complete information with respect to relevant prices. b. workers negotiate for unique wages individually. c. money wages adjust with a short lag. d. All of the above e. None of the above
The phrases "once in, always in" and "once in, always grows" aptly describe a criticism of the Keynesian policy prescription for
a. the self-correcting nature of the economy b. moderating aggregate output c. closing a recessionary gap with government spending d. the balanced budget multiplier e. closing an inflationary gap
National defense and knowledge are generally considered to be
a. private goods. b. public goods. c. proprietary goods. d. societal goods.