If the Fed purchases government securities from Bank A, __________ in the banking system __________ and the money supply __________
A) reserves; fall; falls
B) reserves; rise; falls
C) reserves; rise; rises
D) excess reserves; fall; rises
E) excess reserves; rise; falls
C
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The production function shifts upward as the capital stock increases
a. True b. False Indicate whether the statement is true or false
Oligopolistic firms never collude because they have almost no incentive to do so.
Answer the following statement true (T) or false (F)
The Redwood City Council has decided that there is an overallocation of resources in the lawn-care industry. Almost every homeowner owns a lawnmower, hose and sprinkler, seeder, spreader, etc., and these items are used, at most, once a week. The council
will establish a legal monopoly and select a private firm that will be responsible for all lawn care in the city. What types of rent-seeking activities can be expected as a result of this action?
According to the classical dichotomy, which of the following is influenced by monetary factors?
a. nominal wages b. unemployment c. real GDP d. All of the above are correct.