The level of reserves in the banking system is determined by
A) the Federal Open Market Committee. B) the Treasury Department.
C) bond dealers. D) the American Banking Association.
A
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Holding everything else constant, the U.S. real exchange with India will increase if the rupee depreciates
Indicate whether the statement is true or false
Which of the following is correct?
a. The GDP deflator is better than the CPI at reflecting the goods and services bought by consumers. b. The CPI is better than the GDP deflator at reflecting the goods and services bought by consumers. c. The GDP deflator and the CPI are equally good at reflecting the goods and services bought by consumers. d. The GDP deflator is more commonly used as a gauge of inflation than the CPI is.
The figure below shows a situation where the producers of Good X are forming an international cartel. Here, MR = Marginal Revenue, and MC = Marginal Cost. The cartel will set a monopoly price for its output.
How much well-being would the world lose as a result of the formation of the cartel?
A. $15.0 billion B. $12.5 billion C. $50.0 billion D. $5.0 billion
One way to bring the inflation rate down is
a. to reduce excessive competition b. to increase government spending c. to aggregate across markets d. for the government to purposely cause a severe recession e. to reduce taxes