Refer to the given diagram for the federal funds market. If the Fed wants the federal funds rate to be i f1 , what quantity of reserves do they need to make available to banks?
A. Q f1 .
B. Q f2 .
C. Q f3 .
D. It cannot be determined with the information given.
A. Q f1 .
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Refer to Exhibit 10-5 When TE is $200 billion, what state is the economy in?
A) TE < TP, individuals are buying less output than firms produce. B) TE > TP, individuals are buying more output than firms produce. C) TE = TP, the economy is in equilibrium. D) TE < TP, individuals are buying more output than firms produce. E) TE > TP, individuals are buying less output than firms produce.
The length of the short run
a. is different for different types of firms. b. can never exceed 3 years. c. can never exceed 1 year. d. is always less than 6 months.
?The number of overidentifying restrictions equals the total number of exogenous variables in the system plus the total number of explanatory variables in the equation.
Answer the following statement true (T) or false (F)
To maximize net benefits in the table, it is most appropriate to use:Control variableTotal BenefitsTotal CostsNet BenefitsMarginal BenefitMarginal CostMarginal Net BenefitQB(Q)C(Q)N(Q)MB(Q)MC(Q)MNB(Q)0000---190010080090010080021,700300C80020060032,4006001,800700E4004A1,0002,00060040020053,5001,5002,000500500F63,9002,1001,800D600-20074,2002,8001,400300700-40084,400B800200800-60094,5004,5000100900-800104,5005,500-1,00001,000-1,000
A. five units of the control variable, since net marginal benefits are zero. B. four units of the control variable, since the marginal benefit exceeds marginal cost. C. six units of the control variable, since the marginal cost exceeds marginal benefit. D. None of the statements associated with this question are correct.