The reserve demand schedule is drawn on a graph that has the quantity of reserves on the horizontal axis and
a. the price level is on the vertical axis.
b. the federal funds rate is on the vertical axis.
c. the price of bonds is on the vertical axis.
d. income is on the vertical axis.
b
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A market in which businesses, households, and governments buy and sell national currencies is
A) the foreign exchange market. B) the currency exchange market. C) the money exchange market. D) the dollar exchange market.
Assume the short-run average total cost for a perfectly competitive industry decreases as the output of the industry expands. In the long run, the industry supply curve will:
A. have a positive slope. B. have a negative slope. C. be perfectly horizontal. D. be perfectly vertical.
Other things being equal, if energy prices rise in a country, then there would be
A. demand-pull inflation. B. more production and a lower price level. C. cost-push deflation. D. cost-push inflation.
A situation in which the price charged is greater than society's opportunity cost would lead to
A. marginal cost pricing. B. too little being produced. C. an efficient amount being produced. D. too much being produced.