The conventional tools of monetary policy include:
A. the currency-to-deposit ratio.
B. the deposit rate.
C. the target federal funds rate range.
D. both the deposit rate and the target federal funds rate range.
Answer: C
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One way tariffs differ from quotas is that
A) tariffs produce revenues for the importing country's government. B) quotas produce revenues for the exporting country's government. C) tariffs produce no revenues but set limits on the imported items. D) tariffs are applied only on raw materials.
Nondiscriminatory firms hiring in the market place have a cost advantage
a. True b. False Indicate whether the statement is true or false
To reduce our dependence on foreign oil, policy makers must realize that the cross-price elasticity sign for gasoline and fossil fuel-burning cars is negative.
Answer the following statement true (T) or false (F)
Suppose that the percentage change in supply is 50%, the price elasticity of demand is 4, and the price elasticity of supply is 1. The equilibrium price will:
A. decrease by 10 percent. B. increase by 55 percent. C. increase by 10 percent. D. decrease by 55 percent.