Total reserves are
A. excess reserves.
B. required reserves plus excess reserves.
C. required reserves plus vault cash.
D. required reserves.
Answer: B
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Which of the following is NOT a condition that helps enforce a cartel agreement?
A) a small number of firms B) nearly homogeneous products C) easily observable prices D) large variation in input prices
Explain why two countries with the same average rate of inflation may not present the same inflation risk for holders of those countries' bonds?
What will be an ideal response?
Under what situations will a colluding firm cheat?
What will be an ideal response?
Contractionary fiscal policy would be most effective in decreasing inflation when
a. the marginal propensity to consume low. b. investment spending is insensitive to interest rates. c. the economy has a high marginal tax rate. d. investment spending is sensitive to interest rates.