Which of the following is not true about excess reserves?
A. They change when the reserve requirement changes.
B. They are equal to the required reserve ratio times transactions deposits.
C. They are bank reserves beyond what the bank is required to hold.
D. They represent the dollars an individual bank can lend.
B. They are equal to the required reserve ratio times transactions deposits.
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What do reports that the dollar is "undervalued" mean? How will foreign exchange markets respond to this information? Support your answer graphically
What will be an ideal response?
Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S2 (point E)
If the technology to produce motorcycles improves and the number of buyers increases, how will the equilibrium point change? A) The equilibrium point will move from E to C. B) The equilibrium point will move from E to A. C) The equilibrium point will remain at E. D) The equilibrium point will move from E to B.
With a monopolist's outcome, consumer surplus is:
A. higher than that of a competitive market. B. lower than that of a competitive market. C. the same as that of a competitive market. D. Any of these is possible.
Which of the following would be considered income in kind?
A) tax refunds B) food stamps C) yard sales D) reduction in the tax rates