Which of the following is likely to happen if the quantity of bank reserves held at the Fed increases?
A) The stock of money in the economy increases. B) The number of loans issued by banks decrease.
C) Bank deposits decrease. D) The real interest rate increases.
A
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The difference in present value between a perpetuity that promised $1 per year starting today and one that promised $1 per year starting next year is
a. 0. b. $1. c. $1/(1 + r). d. $r/(1 + r).
In order for a cap-and-trade system to work, it must be that pollution permits are bought by producing firms -- and not given to them as part of an attempt to prevent them to lobby against the cap-and-trade system
Answer the following statement true (T) or false (F)
Refer to Table 4.2. If you choose to invest in Japanese bonds, your investment return from Scenario B will be
A) 3%. B) 4%. C) 6%. D) 8%.
Which of the following is a difference between collusion and competition? a. Collusion results in higher output, while competition results in lower output
b. Collusion occurs when there are many firms in the market, while competition occurs when there are a few firms of comparable size. c. Collusion results in lower prices, while competition results in higher prices. d. Collusion results in higher prices, while competition results in lower prices.