The federal funds rate is determined
A) by the Board of Governors.
B) by the supply and demand for bank reserves.
C) directly by households' and firms' demands for funds.
D) by the federal government.
Ans: B) by the supply and demand for bank reserves.
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Based on the above table, if the current price level is 100 and the unemployment rate is 4 percent, then the
A) expected inflation rate is 8 percent. B) inflation rate is 2.8 percent. C) expected inflation rate is 2.8 percent. D) inflation rate is 8 percent. E) inflation rate is 108 percent.
The value of the x-coordinate of a point in a graph is the length of a line from the point to the
A) origin. B) scalar. C) x-axis. D) y-axis.
When negative externalities exist in a market, if the producers are forced to pay a Pigouvian tax then:
A. those who interact in the market will lose surplus. B. those who interact in the market will gain surplus. C. producers will gain surplus. D. those who do not interact in the market but are affected by the externality will lose surplus.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.