The incentive of holding excess reserves is equal to
A) the federal funds rate. B) the interest rate earned on excess reserves.
C) the discount rate. D) none of the above.
B
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In the monetary small open-economy model with a flexible exchange rate, an increase in the foreign price level has which impact on domestic money demand?
A) It increases it. B) It decreases it. C) It has no impact. D) It depends.
An individual in the US wants to buy a car from England which costs 12,000 pounds. If the exchange rate is 1 pound = $1.75, how much would the car cost him in dollars?
a. $21,000 b. $6,800 c. $12,000 d. Need more information
If equilibrium real GDP rises from $4 trillion to $6 trillion when government purchases increase by $1 trillion, the MPC must be
a. 0.8 b. 0.4 c. 0.5 d. 0.2 e. 2
A head tax is
a. always regressive. b. an indirect tax on the value of property. c. the primary tax used by U.S. municipalities to raise revenue. d. All of the above are correct.