Use the following graph for the federal funds market to answer the next question.
If the Fed wants the federal funds rate to be at if1, what quantity of reserves do they need to make available to banks?
A. Qf1
B. Qf2
C. Qf3
D. It cannot be determined with the information given.
Answer: A
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All of the following statements accurately describe pre-1763 British colonial policy except:
a. England discouraged western settlements in an effort to reduce conflicts between colonists and Native Americans. b. English taxes imposed on colonists were much lower than the taxes imposed on English residents. c. England passed certain laws designed to reduce colonial production of goods that duplicated popular English products. d. Colonial governors and the Privy Council rarely used their veto power to overturn colonial laws.
When comparing price elasticities of demand in the long run to the short run, what can we say about the long-run elasticities?
a. Within every price range, the price elasticity of demand is more elastic. b. Consumers are less sensitive to price changes. c. Consumers are inclined to make fewer adjustments to quantity demanded when price changes d. Within every price range, the price elasticity of demand is less elastic. e. Because consumers had more time to adjust to a price decrease or increase, their reaction to either is much smaller.
The expenditure method of calculation of GDP is as follows: GDP = Consumption + Investment + Government Spending + Net Exports
a. True b. False Indicate whether the statement is true or false
For teenagers, a 10 percent increase in the price of cigarettes leads to a
a. 1 percent reduction in the quantity demanded of cigarettes. b. 4 percent reduction in the quantity demanded of cigarettes. c. 10 percent reduction in the quantity demanded of cigarettes. d. 12 percent reduction in the quantity demanded of cigarettes.