If the Fed buys government securities from the non-bank public, then
A) reserves at banks decrease.
B) deposits at banks increase and banks' reserves increase.
C) deposits at banks increase and banks' reserves decrease.
D) loans at banks decrease.
E) deposits at banks decrease and banks' reserves increase.
B
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Kyle and Stan are playing Odds or Evens, where Kyle is designated as the "odd" player and Stan is designated as the "even" player. They decide to play the game 10 times. The mixed-strategy equilibrium in this zero-sum game occurs when
A) each player plays a pure strategy. B) one player plays a pure strategy and the other plays a mixed strategy. C) both players play their ideal mixtures. D) There is never an equilibrium in a zero-sum game.
A small change in the rate of productivity growth will have: a. a small impact on output in both the short run and the long run
b. a large impact on output in both the short run and the long run. c. a small impact on output in the short run but a large impact in the long run. d. a large impact on output in the short run but a small impact in the long run. e. no effect on output at all.
Usury laws lead to
A. a surplus of loanable funds. B. a shortage of loanable funds. C. a floor under interest rates. D. more lenders than borrowers.
If the Fed wants to raise interest rates, then it can use its open market operations to:
A. increase the money supply. B. decrease the money supply. C. increase money demand. D. decrease money demand.