If banks are currently holding zero excess reserves and the Fed lowers the required reserve ratio, which of the following will happen?
A) Banks will have a reserve deficiency.
B) Banks will have positive excess reserves.
C) Banks will extend fewer loans.
D) Banks will call in some of their loans to meet the reserve deficiency.
B
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Unlike a perfectly competitive firm, a monopolist
a. can choose how much output to produce. b. cannot increase production without affecting the price she receives for her good. c. usually sells in a market with a downward-sloping demand curve. d. has an MR from increasing output by one unit equal to the price of his product.
This graph below shows a consumer facing a choice between a cash gift and merchandise of greater value. 
Show, using a sketch graph, why a consumer prefers a cash gift rather than a larger gift of merchandise.
What will be an ideal response?
The MRP schedule of the imperfect competitor declines _____ than that of the perfect competitor.
Fill in the blank(s) with the appropriate word(s).
Assume that the marginal propensity to consume in an economy is 0.9. If the economy's full-employment real GDP is $500 billion and its equilibrium real GDP is $550 billion, there is an inflationary expenditure gap of
A. $5 billion. B. $500 billion. C. $100 billion. D. $50 billion.