A key causal link in the interest-rate-based transmission mechanism for monetary policy is from
A. a monetary policy action to excess reserves.
B. the money supply to excess reserves.
C. real GDP to investment.
D. investment to the interest rate.
Answer: A
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Refer to Figure 15-10. What is the area that represents consumer surplus under a monopoly?
A) the triangle P0P2E B) the trapezium P1P2EF C) the rectangle P1P3HF D) the triangle P0P1F
What are price shocks? Why were they not included in the original formulation of the Phillips curve? Why were they added to the modern Phillips curve?
What will be an ideal response?
If you knew that an investment was going to pay you $46,370 in 5 years, and you knew that the annual interest rate over that time would be 3 percent, you could calculate the present value to be:
A. $39,999. B. $37,000. C. $41,998. D. $41,600.
Which of the following is likely to have the most price inelastic demand?
a. mint-flavored toothpaste b. toothpaste c. Colgate mint-flavored toothpaste d. a generic mint-flavored toothpaste