If the Fed buys U.S. government securities from banks, the federal funds rate ________ and banks' reserves ________
A) does not change; increases
B) falls; decrease
C) rises; increase
D) rises; decrease
E) falls; increase
E
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Present value analysis suggests that the real rate of return on Social Security is
A. around 10% for workers of all income levels. B. roughly 3% for high-income earners and negative for low-income earners. C. more than 10% for high-income earners. D. roughly 3% for low-income earners and negative for high-income earners.
Which of the following statements is true of a market?
a. An increase in demand, with no change in supply, will increase the equilibrium price and quantity. b. An increase in supply, with no change in demand, will decrease the equilibrium price and the equilibrium quantity. c. A decrease in supply, with no change in demand, will decrease the equilibrium price and increase the equilibrium quantity. d. All of these.
Which of the following functions of money allows us to not rely on the barter system to get the goods and services we need?
Oksana deposits $90,000 at Flynn Bank. Flynn Bank has a required reserve ratio of 15 percent. How much money could Oksana’s deposit potentially create?
a. $76,500 b. $90,000 c. $600,000 d. $13,500