Given the information in the table above, Home's opportunity cost of cloth is
A) 0.5.
B) 2.0.
C) 6.0.
D) 1.5.
E) 3.0.
A
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If the federal funds rate is __________ the equilibrium interest rate, banks would try to __________ in the federal funds market
A) above; borrow B) below; lend C) below; borrow D) None of the above.
Terrell, an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour, is
a. counted as part of the labor force. b. considered frictionally unemployed. c. an underemployed worker. d. not counted as part of the labor force. e. considered as productively active.
Which of the following incurs a primarily pecuniary cost?
a. a factory’s smog obscuring the sunset b. a defective product causing a fire that burns a house c. noise from a warehouse making neighbors nervous d. the smell from a dogfood factory permeating a neighborhood
Suppose the Fed conducts an open market sale of $50 million in government securities. If the required reserve ratio is 20%, what is the maximum change in the money supply? Assume that banks try not to hold excess reserves and there is no currency withdrawal from the banking system.
A) maximum increase in money supply = $250 million B) maximum decrease in money supply = $250 million C) maximum increase in money supply = $50 million D) maximum decrease in money supply = $50 million