When banks hold excess reserves because they don't see good lending opportunities, _____
a. contractionary monetary policy is negatively affected
b. expansionary monetary policy is negatively affected
c. expansionary monetary policy is unaffected
d. contractionary monetary policy is unaffected
b
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The price elasticity of supply is 0.6. This means that
A) a $10 increase in price would increase quantity supplied by 60. B) a 150 percent increase in price would increase quantity supplied by 90 percent. C) a 50 percent increase in quantity will occur when price increases by 30 percent. D) a 10 percent increase in quantity will occur when price increases by 6 percent.
The idea that people change their behavior in response to taxes is
A. highly controversial among economists. B. accepted by economists, but debated by those in Congress. C. uncontroversial among economists. D. None of these statements is true.
Assume that the reserve requirement is 10 percent. If a bank has total deposits of $80 million, then the required reserves must equal:
a. $80 million. b. $12 million. c. $50 million. d. $8 million. e. $10 million.
A one-time increase in the price level of oil followed by a one-time increase in aggregate demand produce...
What will be an ideal response?