When the Fed buys government securities in the open market, it:
A. Decreases the excess reserves of the banking system, reducing excess reserves for overnight loan in the Federal funds market, thus lowering the Federal funds rate
B. Increases the excess reserves of the banking system, reducing excess reserves for overnight loan in the Federal funds market, thus lowering the Federal funds rate
C. Decreases the excess reserves of the banking system, reducing excess reserves for overnight loan in the Federal funds market, thus increasing the Federal funds rate
D. Increases the excess reserves of the banking system, raising excess reserves for overnight loan in the Federal funds market, thus lowering the Federal funds rate
D. Increases the excess reserves of the banking system, raising excess reserves for overnight loan in the Federal funds market, thus lowering the Federal funds rate
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In fall 2009, the population of the United States was 301 million, the working-age population was 235.7 million, the total number of people employed and unemployed was 154.9 million, and the total number of unemployed people was 14.7 million
What is the unemployment rate? A) 51 percent B) 6.2 percent C) 4.9 percent D) 9.5 percent E) 4.6 percent
A good is a nonexcludable if
A. its consumption by one person does not reduce its consumption by others. B. it is impossible to prevent people from obtaining the benefits of the good once it has been produced. C. no negative externalities are associated with its production and consumption. D. it is free in the first place; that is, it is so abundant that people can get all they want at zero price.
The money supply is $6 million, currency held by the nonbank public is $2 million, and the reserve—deposit ratio is 0.1. The monetary base is equal to
A) $2 million. B) $2.4 million. C) $2.6 million. D) $4 million.
The residual demand curve is
A) the market demand minus the supply of other firms. B) the remaining demand after the market clears. C) the market demand minus the supply of one firm. D) the long-run demand for a market.