The interest rate that banks are charged when they borrow reserves from other banks is the
A. AAA corporate bond rate.
B. prime rate.
C. commercial paper rate.
D. federal funds rate.
Answer: D
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Usually the demand for labor decreases (that is, the demand for labor curve shifts leftward) if the
A) wage rate increases. B) wage rate decreases. C) price of the firm's output rises. D) prices of other factors fall.
The CPI bias arises from all of the following items except ________
A. the introduction of new goods and services B. the improved quality of goods C. the goods and services bought by poor people D. consumers' responses to price changes
If the market price is below the equilibrium price, forces will come into play to
a. move the price lower. b. move it to the equilibrium price. c. move it above the equilibrium price. d. increase the supply.
In the money market, if the money supply decreases, the opportunity cost of holding money: a. decreases and the quantity of money demanded increases
b. decreases and the quantity of money demanded falls. c. increases and the quantity of money demanded falls. d. increases but the quantity of money demanded remains unchanged. e. increases and the quantity of money demanded also increases.