If the Fed buys securities on the open market, this will
A. reduce banks' excess reserves.
B. increases banks' excess reserves.
C. lower the reserve requirement.
D. contract the money supply.
B. increases banks' excess reserves.
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What will be an ideal response?
A principle difference between the original Keynesian model and the new Keynesian model is that in the new version
A) the traditional assumptions of profit maximization is no longer included. B) monetary policy is impotent. C) wages and prices adjust slowly to market conditions. D) All of the above are correct.
When actions are finely divisible, the marginal benefit of action X is equal to:
A. the slope of a line that is tangent to the total benefit curve at X. B. the slope of a line from the origin to a point on the total benefit curve at X. C. the marginal cost of X. D. the inverse of the slope of the total benefit curve at point X.
Refer to the data. Suppose quantity demanded increased by 12 units at each price, changing the equilibrium price in a direction and an amount for you to determine. Over that price range, supply is
What will be an ideal response?