Which of the following is true regarding the interest rate earned on the reserves that bank's keep at the Fed?
A) These reserves earn no interest.
B) It is relatively low.
C) It varies depending on the federal funds rate.
D) It is equal to the discount rate.
Ans: B) It is relatively low.
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In 2015, U.S. GDP was almost
a. $18 trillion. b. $15 trillion. c. $14 trillion. d. $12 trillion.
Keynesian monetary theory:
a) is the same as the classical theory in all essential elements. b) states that changes in the money supply have no impact on GDP in either the short or long run. c) states that an increase in the money supply leads to lower interest rates, which stimulates investment and aggregate demand. d) states that an increase in the money supply will lower interest rates and thereby shift the long-run aggregate supply curve to the right.
Rent controls often have adverse effects, including
A. too much construction of new rental units in the community. B. income transfers from the poor to landlords. C. too much housing in a community. D. deterioration in the quality of existing rental units.
Referring to Table 4.1, Box B should be filled with 
A. $1 B. $0. C. $100. D. $200.