When the Fed buys U.S. government securities from a member bank, that bank's excess reserves, required reserves, and total reserves all increase
a. True
b. False
Indicate whether the statement is true or false
False
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A price floor is binding when it is set
a. above the equilibrium price, causing a shortage. b. above the equilibrium price, causing a surplus. c. below the equilibrium price, causing a shortage. d. below the equilibrium price, causing a surplus.
How is the production of public goods funded?
If the minimum wage law is repealed and employers begin using efficiency wages far less frequently, it would ___ unemployment and ____ the natural rate of unemployment: a. Increase; increase
b. Increase; not change. c. Decrease; decrease. d. Decrease; not change.
A lender faces a(n) ________ problem if borrowers with a greater chance of defaulting on their loans get loans from the lender.
A. adverse selection B. free?rider C. external cost D. moral hazard