In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a ________ in the reserve requirement ________ the demand for reserves, lowering the federal funds interest rate,
everything else held constant. A) rise; decreases
B) rise; increases
C) decline; increases
D) decline; decreases
D
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The table above shows the total product schedule for Rick's Lawn Service, a yard care company. Increasing marginal returns
A) end when the fourth worker is hired. B) occur at all levels of employment. C) occur as long as output increases. D) end when the second worker is hired. E) never occur.
If current output is less than the profit-maximizing output, which must be true?
A) Total revenue is less than total cost. B) Average revenue is less than average cost. C) Average revenue is greater than average cost. D) Marginal revenue is less than marginal cost. E) Marginal revenue is greater than marginal cost.
Country A's overall balance in the balance of payments:
a. Must equal zero. b. Is positive when a nation's central bank is buying domestic currency in the foreign exchange market and negative when it is selling the domestic currency in the foreign exchange market c. Is negative when a nation's central bank is buying domestic currency in the foreign exchange market and positive when it is selling the domestic currency in the foreign exchange market d. Is negative only when the current account is positive. e. Has little or no link to a nation's monetary base.
If the benefits of X = $100 and the price of X = $50, then
A. you should not buy X. B. you will be indifferent between buying X and keeping your money. C. $100 is the reservation price. D. $0 is the reservation price.