In the market for reserves, when the federal funds interest rate is below the discount rate, the supply curve of reserves is

A) vertical.
B) horizontal.
C) positively sloped.
D) negatively sloped.


A

Economics

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When the Fed increases the federal funds rate,

A) there is no effect on investment because investment depends on the real interest rate. B) the real interest rate falls, and investment increases. C) the real interest rate rises, and investment decreases. D) the real interest rate is unaffected, but investment still decreases. E) the real interest rate rises, and investment does not change.

Economics

Labor (# of employees)Total Output0011025031104160520062307255827592901030011305Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. What is the marginal product of the fifth worker?

A. 40 B. 30 C. 50 D. 200

Economics

Which of the following will happen if the GDP of a country increases and the population remains constant?

A) Income per capita will remain constant. B) Income per capita will increase. C) Unemployment rate will increase. D) Gross national product will decrease.

Economics

Price elasticity of demand is a measure of the change in quantity demanded that results from a change in price

a. True b. False Indicate whether the statement is true or false

Economics