Which of the following is a reason why the money demand curve might shift?
a. an increase in the interest rate
b. a change in the money supply
c. open market purchases of bonds by the Federal Reserve
d. changes in the required reserve ratio
e. new methods of making payments that replace money
E
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The winners curse is more often associated with;
a. oral auctions b. second-price auctions c. first-price sealed bid auctions d. common value auctions
One group of people uses New York City subways only during rush hour to travel to and from work. Another group uses them only in midday for leisure activity. If New York City wants to increase transit fares with the smallest possible reduction in revenue, for which group should it increase the fare?
a. The rush-hour group because its demand for subway service is more elastic than that of the midday group. b. The rush-hour group because its demand for subway service is less elastic than that of the midday group. c. The midday group because its demand for subway service is more elastic than that of the rush-hour group. d. The midday group because its demand for subway service is less elastic than that of the rush-hour group. e. It doesn't matter because both groups have the same elasticity of demand.
Refer to Figure e. Brandon and Allie want to go on a date one summer evening. Allie is a Red Sox fan, while Brandon is a Mets fan. Both teams are playing that evening, but not against each other. Each would rather watch their favorite team, but neither can force the other to watch a particular game, and each is willing to suffer through the other's game if it means time together. If Brandon watches the Mets, what is Allie's best response?
A. Allie should watch the Red Sox.
B. Allie should watch the Mets.
C. It does not matter which Allie watches; she is indifferent between the Red Sox and the Mets.
D. Allie should not consider Brandon's choice when making her decision.
The discount rate is the interest rate charged by the central bank when it makes loans to commercial banks
a. True b. False Indicate whether the statement is true or false