The monetary base is equal to
A) M1.
B) M2.
C) currency and coins in circulation plus checkable deposits.
D) the sum of coins, Federal Reserve notes, and banks' reserves at the Fed.
E) the sum of coins, Federal Reserve notes, and gold at the Fed.
D
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Everything else held constant, in the market for reserves, decreases in the interest rate paid on excess reserves affect the federal funds rate
A) when the funds rate is below the interest rate paid on excess reserves. B) when the funds rate equals the interest rate paid on excess reserves. C) when the funds rate is below the discount rate. D) when the funds rate equals the discount rate.
What is the CPI?
A. The consumer price index B. The Consumer Price Institute C. The consumer protection index D. The consumer product index
Which of the following is TRUE about comparative advantage?
A) Comparative advantage explains trade among nations, but not within nations. B) Comparative advantage explains trade within nations, but not among nations. C) Comparative advantage explains trade within nations and among nations. D) Comparative advantage has nothing to do with trade among nations; it only is concerned with specialization within a firm.
Entry into a monopolistically competitive industry
A. is very difficult. B. is about the same as entering a monopoly industry. C. is relatively easy. D. can be easy or difficult, depending on the type of product.