A federal budget surplus occurs when government expenditures exceed tax revenues
Indicate whether the statement is true or false
False
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When you find the answer to your problem but settle for something else is an example of the
a. implicit favorite model b. bounded rationality model c. econological model d. none of the above
A key difference between import quotas and voluntary export restrictions (VERs) is that
A. the former requires cooperation from a foreign government or foreign producers, whereas the domestic government may unilaterally enact the latter. B. one raises the price of the imported product involved, whereas the other does not. C. the domestic government may unilaterally enact the former, whereas the latter requires cooperation from a foreign government or foreign producers. D. one is a tax, whereas the other is a quantity limit.
Excess reserves refer to the:
A. difference between a bank's vault cash and its reserves deposited at the Federal Reserve Bank. B. minimum amount of actual reserves a bank must keep on hand to back up its customers deposits. C. difference between actual reserves and loans. D. difference between actual reserves and required reserves.
When the Federal Reserve Banks decide to buy government bonds from banks and the public, the supply of reserves in the Federal funds market:
A. Increases and the Federal funds rate decreases B. Increases and the Federal funds rate increases C. Decreases and the Federal funds rate decreases D. Decreases and the Federal funds rate increases