If the Fed lends to member banks, what happens to reserves and the money supply?
A. Reserves increase and the money supply decreases.
B. Both increase.
C. Reserves decrease and the money supply increases.
D. Both decrease.
Answer: B
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The types of games analyzed by the Nash equilibrium are
a. Simultaneous move games b. Sequential move games c. Both of the above d. None of the above
In the long run, price elasticities of demand are usually __________
a. less than they are in the short run because people can adjust b. the same as they are in the short run because tastes don't change c. greater than they are in the short run because prices rise over time d. less than they are in the short run because real prices fall over time e. greater than they are in the short run because consumers have time to adjust
What kind of market runs most efficiently when one large firm supplies all of the output?
a) a natural monopoly b) a network c) perfect competition d) imperfect competition
Figure 7.5
The consumer must decide how to split $20 between spending and saving.Refer to Figure 7.5. If the consumer is subject to present bias, he/she will maximize utility at a marginal utility per dollar of ________ utils for consumption and ________ utils for saving.
A. 15; 15 B. 15; 30 C. 30; 15 D. 30; 30