If the current market federal funds rate is in the target rate range and the demand for reserves decreases, the likely response in the federal funds market will be:
A. the market federal funds rate will decrease.
B. the market federal funds rate will increase.
C. the market federal funds rate will equal the target rate.
D. nothing; the reserve supply is so high that the market federal funds rate will be unchanged.
Answer: D
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The following data give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GDP at the time.Turning PointDateReal GDP(1996 $ billions) (A)July 19531992.2(B)May 19541941.0(C)Apr. 19572182.7(D)Apr. 19582117.4(E)Apr. 19602391.0The economy experienced an expansion that lasted from:
A. May 1954 to April 1958. B. July 1953 to May 1954. C. July 1953 to April 1957. D. May 1954 to April 1957.
Refer to the Article Summary. By marketing to pet owners, hotel companies like Klimpton, Choice, and W are trying to set themselves apart from competing hotel companies. This is an example of
A) product differentiation. B) defending a brand name. C) legally enforcing a trademark. D) blocking entry into the market.
Household savings rates:
A. have been roughly 10% for the last 30 years or so in China. B. were fairly constant at about 8% in China from 2000 to 2010. C. were negative in China in 2014. D. were 49% in China in 2014.
The supply of labor to one industry will decrease when
A) the price of leisure activities falls. B) the income effect dominates the substitution effect. C) the demand for labor falls in the industry. D) workers receive better employment opportunities in other industries.