In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, then an open market ________ the supply of reserves, raising the federal funds interest rate, everything else held constant
A) sale decreases
B) sale increases
C) purchase increases
D) purchase decreases
A
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What are the assumptions of the Heckscher-Ohlin theorem?
What will be an ideal response?
Which of the following price indexes is designed to measure changes in the prices of goods and services purchased by a typical individual?
A) Producer Price Index B) Gross Domestic Product (GDP) Deflator C) Index of Leading Economic Indicators D) Consumer Price Index
Why does the market not provide national defence?
a) It is impossible to prevent any single person from enjoying the benefit of national defence. b) The fixed cost of national defence is too high. c) The necessary resources for national defence are not available in the private sector. d) Private sectors are not willing to pay for it.
An allocation of resources is Pareto optimal if
A. no further mutually beneficial exchange is possible. B. it is possible to make everyone else better off. C. it is possible to make one person better off without making at least some others worse off. D. it is below the contract curve.