The higher the federal funds rate, the ________ the opportunity cost of holding reserves, which ________ the incentive to economize on reserves
A) lower; increases
B) lower; decreases
C) higher; decreases
D) lower; does not change
E) higher; increases
E
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Which of the following statements is true?
A) The marginal cost curve intersects the average fixed cost curve at its minimum point. B) When marginal cost is greater than average fixed cost, average fixed cost increases. C) Average fixed cost does not change as output increases. D) As output increases, average fixed cost becomes smaller and smaller.
According to agency theory, a financial crisis results from ________ that disrupts the flow of funds from lender-savers to borrower-spenders
A) an increase in asymmetric information B) a macroeconomic shock C) the existence of asymmetric information D) a decrease in saving
What happens to the equilibrium price and quantity in the market for science fiction novels, a normal good, when income increases and a new technology is invented, making it easier to publish books.
a. Quantity and price both increase. b. Quantity and price both decrease. c. Quantity will increase and the price change is ambiguous. d. Price will decrease but the quantity change is ambiguous.
Which of the following trade rounds was started in 2001 but has never been settled even in 2012 and whose goals were aimed at lowering tariffs on a wide range of industrial and agricultural products?
a. Uruguay b. Switzerland c. Doha d. All rounds have been completed.