In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the demand for reserves, ________ the federal funds rate, everything
else held constant. A) decreases; lowering
B) increases; lowering
C) increases; raising
D) decreases; raising
C
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Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
Prior-to-trade (autarky) total economic surplus equals areas
A. A + B + C + E + F + J + I. B. A + B + C + D. C. A + B + C. D. A + B + C + E + F.
When there few close substitutes available for a good, demand tends to be
A) relatively elastic. B) perfectly elastic. C) relatively inelastic. D) perfectly inelastic.
Relative poverty
A) has been eliminated in the United States. B) will always be with us. C) has never existed in the United States. D) can be eliminated in the next 20 years.
In the above table, if the marginal factor cost is $48, how many workers would be hired?
A) 3 B) 4 C) 5 D) 6