Which of the following is true of the quantity demanded of reserves?
A) The quantity demanded of reserves increases as the federal funds rate falls.
B) The quantity demanded of reserves increases as the inflation rate increases.
C) The quantity demanded of reserves is constant over time for almost every bank.
D) The quantity demanded of reserves increases at a constant rate over time.
A
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Are outstanding credit card balances counted as part of the money supply?
a. Yes; they are used to purchase things, and therefore, they are included in the money supply figures. b. No; money is an asset, while the credit card balances are a liability. Thus, they are not included in the money supply figures. c. Partly; credit card balances of $100 or less are included in the M1 money supply, but the money supply figures do not include balances in excess of $100. d. Partly; credit card balances are included in the M1 money supply, but not the M2 money supply.
Algebraically solve for the efficient equilibrium price and quantity, PE and QE.
As an economic consultant to the federal government, you recommend a market-based national policy response to global warming. In particular, you suggest using a pollution charge, which can be implemented as a gasoline tax. Based on your estimates, the marginal benefits and costs per gallon of gasoline are modeled as follows: MPB = 10 ? 0.7Q MEB = ? 0.05Q MSC = MPC = 1 + 0.15Q, where Q is in millions of gallons.
Which of the following increases demand for a good
A) a rise in the price of a complement B) the expectation that future income will be higher C) an increase in income, assuming the good is an inferior good D) a decrease in the number of buyers E) a fall in the price of a substitute
The view that the antitrust laws need to be strongly enforced to prevent illegal business behaviors, monopolization of markets, and allocative inefficiency is known as the:
A. structuralist view of antitrust. B. behavioralist view of antitrust. C. laissez-faire perspective on antitrust. D. active antitrust perspective.