A given short-run Phillips curve shows that an increase in the inflation rate will be accompanied by a lower unemployment rate in the short run
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that a bank begins with $500 million in deposits and $100 million in reserves and is just meeting its desired reserve ratio. Now suppose a decrease in the required reserve ratio lowers the desired reserve ratio to 10 percent
After the fall in the desired reserve ratio but before the bank makes any changes, the bank's excess reserves are A) 0. B) $400 million. C) $450 million. D) $50 million.
In the monetary small open-economy model with a flexible exchange rate, an increase in the world real interest rate
A) increases domestic output and increases the nominal exchange rate, as long as real money demand is much more responsive to real income than to the real interest rate. B) increases domestic output and decreases the nominal exchange rate, as long as real money demand is much more responsive to real income than to the real interest rate. C) decreases domestic output and increases the nominal exchange rate, as long as real money demand is much more responsive to real income than to the real interest rate. D) decreases domestic output and decreases the nominal exchange rate, as long as real money demand is much more responsive to real income than to the real interest rate.
Which of the following items is a final good?
A) mustard in a deli B) tin purchased by a tin can company C) a sweater purchased by someone in a department store D) a and b E) a, b, and c
Fee-for-service insurance
A. requires you pay for services before they are performed. B. allows patients to pick their own doctor. C. is typically less expensive than an HMO covering the same illnesses. D. has more meddlesome bureaucrats than an HMO.