Which of the following statements is true?
A) The Fed can influence the money supply in the economy by influencing the required amount of reserves.
B) The Fed can reduce the growth of money supply by increasing the growth in bank reserves.
C) The rate of inflation in the long run is equal to the rate of growth of real GDP minus the rate of growth of money supply.
D) The Fed has the power to dictate the volume of deposits held with commercial banks.
A
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The purpose of a cartel is to:
a. promote product innovation. b. increase market competition. c. act like a monopoly. d. diversify operations. e. decrease market concentration.
The nominal tax rate is
A. Taxes paid divided by total economic income. B. Equal to the marginal tax rate. C. Taxes paid divided by taxable income. D. Lower than the effective tax rate.
Suppose that Bill and Ted use a tit-for-tat scheme to encourage cartel pricing and Bill chooses the low price for a single month. Bill and Ted will deviate from cartel pricing for two months.
Answer the following statement true (T) or false (F)
An increase in the relative price of a good cannot be caused by
A) an increase in the nominal price of the good that is greater than the increase in the nominal price of the other good. B) a decrease in the nominal price of the good that is less than the decrease in the nominal price of the other good. C) a decrease in the nominal price of the other good while the price of the good itself remains constant. D) an increase in the nominal price of the other good while the price of the good itself remains constant.