The Fed's purchase of U.S. government securities constitutes
a. a restrictive policy because it lowers the amount of total reserves in the banking system.
b. a restrictive policy because it lowers the amount of excess reserves in the banking system.
c. an expansionary policy because it raises the amount of total reserves in the banking system.
d. an expansionary policy because it lowers the amount of required reserves in the banking system.
C
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Since 1973, governmental efforts to control currency values have been _____, and currency exchange rates have ______.
a. nonexistent; remained constant b. insufficient; changed dramatically c. very strict; remained constant d. nonexistent; been fixed
Exponential smoothing is a forecasting method where the weights on the lagged dependent variable decline to zero exponentially.
Answer the following statement true (T) or false (F)
The price elasticity of demand is equal to
A. The unit change in quantity demanded times the unit change in price. B. The percentage change in quantity demanded times the percentage change in price. C. The unit change in price divided by the unit change in quantity demanded. D. The percentage change in quantity demanded divided by the percentage change in price.
A perfectly elastic demand curve exhibits
A) zero responsiveness to changes in price. B) that quantity demanded will decrease to zero when there is a slight increase in the price level. C) a change in quantity demanded that is proportional to the change in price. D) a change in quantity demanded that is always twenty percent of the change in price.