Does the Fed pay interest on required reserves and excess reserve balances held at the Federal Reserve bank?
What will be an ideal response?
Yes, the Fed pays interest on required reserves and excess reserve balances held at the Federal Reserve bank. This change is a recent one and was made in late 2008.
You might also like to view...
A student has two options: she can either surf the web, or work part-time. Working part-time pays her $20 per hour. What is the student's opportunity cost of surfing the web for 5 hours?
A) $4 B) $20 C) $50 D) $100
The reason that the production possibilities frontier is usually a bow-shaped curve instead of a straight line is that
a. it makes it easier to illustrate the concepts of scarcity and prices with a bow-shaped curve than it is with a straight line b. early economists began drawing them in this way and the convention has continued throughout the years c. output eventually reaches a maximum and then declines d. resources are not perfectly adaptable to the production of all goods e. the frontier will shift outward over time
When firms have market power, it means that they:
A. are a price taker. B. can noticeably affect the market price. C. do not affect the market quantity offered for sale. D. can earn as much profit as they want.
The marginal revenue product of capital curve is downward sloping due to the law of diminishing returns
Indicate whether the statement is true or false