A bank's required reserves are the fraction of deposits they are required by law to hold as reserves
Indicate whether the statement is true or false
TRUE
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Suppose the Chicago Bears football team raises ticket prices by 13 percent and as a result the quantity of tickets demanded decreases by 21 percent. This response means that the demand for Bears tickets is
A) inelastic. B) elastic. C) unit elastic. D) perfectly inelastic. E) perfectly elastic.
Which of the following instruments are traded in a money market?
A) bank commercial loans B) commercial paper C) state and local government bonds D) residential mortgages
In perfect competition, marginal revenue always equals
A. total revenue. B. price. C. average cost. D. marginal fixed cost.
If the unemployment rate is below the natural rate, then
a. inflation is less than expected. As inflation expectations are revised the short-run Phillips curve will shift right. b. inflation is less than expected. As inflation expectations are revised the short-run Phillips curve will shift left. c. inflation is greater than expected. As inflation expectations are revised the short-run Phillips curve will shift left. d. inflation is greater than expected. As inflation expectations are revised the short-run Phillips curve will shift right.