The monetary policy target the Federal Reserve focuses primarily on today is
A) M1.
B) M2.
C) the interest rate.
D) the inflation rate.
E) the unemployment rate.
C
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All else constant, as the price elasticity of demand decreases, so does the marginal revenue resulting from a decrease in price
Indicate whether the statement is true or false
If there is an increase in market demand in a perfectly competitive market, then in the short run
a. there will be no change in the demand curves faced by individual firms in the market b. the demand curves for firms will shift downward c. the demand curves for firms will become more elastic d. market supply will fall e. profits will rise
A decrease in the availability of an important major resource such as oil shifts aggregate supply left.
Answer the following statement true (T) or false (F)
Dollar Bank is currently loaned up. If the required reserve ratio is lowered
A. Dollar Bank will have excess reserves that it can lend out. B. Dollar Bank's net worth will increase. C. Dollar Bank will still be loaned up because it did not receive any additional deposits. D. Dollar Bank's actual reserves will increase, but it will still be loaned up.