The equation of exchange is an accounting identity, not an economic theory.
Answer the following statement true (T) or false (F)
True
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Use the following graph for the federal funds market to answer the next question.
If the Fed wants the federal funds rate to be at if1, what quantity of reserves do they need to make available to banks?
A. Qf1 B. Qf2 C. Qf3 D. It cannot be determined with the information given.
The figure above shows the U.S. supply of labor curve. An increase in the income tax rate leads to a
A) movement downward along the supply of labor curve from a point such as A to a point such as B. B) leftward shift of the supply of labor curve. C) rightward shift of the supply of labor curve. D) movement upward along the supply of labor curve from a point such as C to a point such as B. E) None of the above answers is correct because there is no change in the supply of labor curve.
The authors feel subsidies destroy wealth because
a. subsidies move assets from lower- to higher- valued uses b. subsidies move assets from higher- to lower- valued uses c. subsidies help producers only d. subsidies help consumers only
The discount rate is
a. set in the money market. b. set by each member bank. c. set by the Federal Reserve Bank. d. the same as the federal funds rate.