If the Fed reduces the interest paid on banks' reserves, it is trying to make banks hold:
A. More excess reserves
B. Less excess reserves
C. More required reserves
D. Less required reserves
B. Less excess reserves
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Under perfect capital mobility, monetary policy has the largest impact on the income under:
a. floating exchange rates. b. fixed exchange rates. c. dollarization. d. a currency union.
According to Keynes, the primary determinant of a person's saving is NOT
A) the person's level of income but the desired real income of the person. B) the person's level of savings but the expected interest rate in the near future. C) the interest rate but the level of savings the person has. D) the interest rate but the level of the person's real disposable income.
When the private costs and the social costs are NOT the same, there is a(n)
A) externality. B) internality. C) public good. D) monopoly.
To say that a price ceiling is nonbinding is to say that the price ceiling a. results in a surplus
b. is set above the equilibrium price. c. causes quantity demanded to exceed quantity supplied. d. All of the above are correct.