If the Fed paid a higher interest rate to banks on their reserves at the Fed, excess reserves in the banking system would tend to fall
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to the figure above. When the demand curve for flash drives is D and the supply curve of flash drives is S1, what is the surplus in the market if the price is $7?
A) 10 units B) 20 units C) 50 units D) 60 units
Economists use the term inflation to describe a situation in which the economy's overall production level is rising
a. True b. False Indicate whether the statement is true or false
Which of the following is often intended as an effect of a rescue package provided to a country?
A. It repels new private foreign lending to the country. B. It helps to avoid the problem of moral hazard. C. It limits any contagion effects. D. It stimulates the outflow of capital from the country.
Which of the following is TRUE regarding marginal benefit? I) The marginal benefit curve shows the benefit firms receive by producing another unit of a good. II) Marginal benefit increases as more of a good is consumed
A) I and II B) I only C) II only D) neither I nor II