The corridor is the ________________ section of the ______________________ curve of reserves in the federal funds market
A) vertical; demand
B) horizontal; demand
C) vertical; supply
D) horizontal; supply
C
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Setting concert ticket prices below their market clearing level replaces monetary with nonmonetary costs
Indicate whether the statement is true or false
Once the profit-maximizing output where MR = MC is determined, price is set by
a. adding a standard markup percentage to marginal cost. b. the demand curve. c. making it equal to MR = MC. d. subtracting the marginal cost from total revenue.
The unemployment rate decreases when we go from
A. W to X.
B. X to W.
C. X to Y.
D. Y to X.
How does monetary policy work in the short run?
A. Fed open market purchases, reserves/money supply increase, interest rates decrease, investment increases, demand increases, price and output increase B. Fed open market purchases, reserves/money supply decrease, disposable income increases, consumption increases, demand increases, price and output increase C. Fed open market sales, reserves/money supply increase, interest rates decrease, investment increases, demand increases, price and output increase D. Fed open market sales, reserves/money supply increase, interest rates decrease, investment increases, demand increases, price and output increases E. Fed open market purchases, government spending increases, demand increases, price and output increase