An increase in real GDP can shift
A) money demand to the left and increase the equilibrium interest rate.
B) money demand to the right and increase the equilibrium interest rate.
C) money demand to the right and decrease the equilibrium interest rate.
D) money demand to the left and decrease the equilibrium interest rate.
B
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In the United States, where do depository institutions hold their reserves?
A) either as vault cash or on reserve with Federal Reserve district banks B) All reserves must be held at a Federal Reserve district bank. C) in accounts with the U.S. Department of the Treasury D) in their own vaults in the form of precious metals such as gold and silver
A good or service or a resource is nonexcludable if
A) it is possible to prevent someone from enjoying its benefits. B) it is not possible to prevent someone from benefiting from it. C) its use by one person decreases the quantity available for someone else. D) its use by one person does not decrease the quantity available for someone else.
What are rational expectations, and how might rational expectations make monetary policy ineffective?
What will be an ideal response?
When comparing perfect competition and monopoly, a major assumption made is that
A. consumers only care about the price of the good and not whether the seller is a monopoly or not. B. the costs of production are the same under monopoly as under perfect competition. C. the monopolist can make an above normal rate of return. D. the monopolist faces a downward sloping demand curve.