If a perfect competitor is losing money it must be in the _________.
short run
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Which activity of the Fed would tend to increase excess reserves throughout the banking system?
A) Purchases of government bonds on a mass scale B) An increase in the required reserve ratio C) An increase of the discount rate D) Sales of government bonds on a mass scale
All else equal, the ________ the coupon rate on a bond, the ________ the bond's duration
A) higher; longer B) higher; shorter C) lower; shorter D) greater; longer
The labor force participation rate:
A. tells us what fraction of the working-age population wants to be working, whether or not they actually have a job. B. typically rises during times of recession, as more people need work. C. is used as an indication of the health of the overall economy. D. All of these are true.
The term "open market operations" refers to the:
A. loan-making activities of commercial banks. B. effect of expansionary monetary policy on interest rates. C. operation of competitive markets in the banking industry as the result of deregulation. D. buying and selling of government securities by the Federal Reserve.