If the Fed reduces the money supply, banks will often initially have
a. more reserves than they are required to hold
b. excess reserves
c. increased demand deposits
d. fewer loans than normal
e. deficient reserves
E
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Which of the following is a monetary policy goal?
i. keeping the inflation rate low ii. attaining maximum employment iii. keeping the long-term interest rate at a moderate level A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Refer to the scenario above. If they are the only bidders in the auction and each bidder uses his optimal strategy, the maximum price the winner is likely to pay is ________
A) $210 B) $350 C) $500 D) $625
Based on the following information, what is the balance on the current account?
Exports of goods and services = $5 billion Imports of goods and services= $3 billion Net income on investments = -$2 billion Net transfers = -$2 billion Increase in foreign holdings of assets in the United States = $4 billion Increase in U.S. holdings of assets in foreign countries = -$1 billion A) -$2 billion B) $1 billion C) $3 billion D) $4 billion
University tuitions are normally set at market clearing levels, which is why closed enrollment announcements are necessary
Indicate whether the statement is true or false