If Treasury deposits at the Fed are predicted to fall, the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves
A) defensive; inject
B) defensive; drain
C) dynamic; inject
D) dynamic; drain
B
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If the U.S. government places tariffs on imports from countries that have been accused of deliberately undervaluing their currencies, the price of these imports will ________ and the demand for the undervalued currency will ________
A) rise; fall B) fall; rise C) rise; rise D) fall; fall
The price a perfectly competitive firm receives for its output
A) is determined by the interaction of all sellers and all buyers in the firm's market. B) is determined by the interaction of the firm and all of the consumers who buy from the firm. C) will be lowered by the firm in order to sell more output. D) will not change in response to changes in market demand and supply because the firm is a price taker.
Which of the following is not a characteristic of market structure?
a. The number of sellers in the industry. b. The ease with which firms may enter or exit the industry. c. The existence of differences among sellers' products. d. The presence or absence of government taxation in the market.
If the Federal Reserve increases the legal reserve requirement, banks are not obliged to comply
Indicate whether the statement is true or false