Which of the following most clearly limits the ability of the commercial banking industry to expand the money supply?
a. the reserve requirements mandated by the Fed
b. the number of commercial bank charters issued by the Fed
c. the dollar value of the bonds issued by the U.S. Treasury
d. the federal funds interest rate that commercial banks pay (and receive) for short-term loanable funds
A
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All of the following will shift the demand curve for capital, except:
a. future expectations about the demand for the good produced by a firm. b. technological changes. c. the price of capital. d. the entry of new firms into the market. e. the change in the interest rate.
‘The U.S. tax code gives preferential treatment to investors in municipal bonds. This is an example of
a. a tax loophole. b. tax evasion. c. an administrative burden. d. tax enforcement.
Which of the following is true?
a. The monopolist's marginal revenue will always be less than the price because of its downward-sloping demand curve. b. In order to sell more output, the monopolist must accept a lower price on all units sold. c. The monopolist will receive additional revenue from the sale of an additional new unit but will receive less revenue on all of the units it was previously selling as well. d. All of these statements are true.
Consider a small open economy with desired national saving of Sd = 20 + 200rw and desired investment of Id = 30 - 200rw.Calculate national saving, investment, and the current account balance in equilibrium when the real world interest rate is(a)rw = 0.025.(b)rw = 0.05.(c)rw = 0.0.(d)Now suppose something causes desired national saving to increase by 10, so that it is now Sd = 30 + 200rw. Repeat parts (a), (b), and (c).(e)Suppose, with desired national saving at its original level of Sd = 20 + 200rw, something causes desired investment to rise by 10, to Id = 40 - 200rw. Repeat parts (a), (b), and (c).
What will be an ideal response?