If there exists a shortage in the market for snowmobiles, then the price of a snowmobile will
A) rise.
B) fall.
C) neither rise nor fall.
D) at first fall then rise.
A
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Why are there significant time lags in monetary policy?
a. Financial markets are inefficient and information takes several months to impact them. b. Changes in monetary policy only affect future projects such as factories, not current ones. c. Interest rates takes several months to change after a change in money supply. d. Interest rates are fixed and it takes several months to change laws to have the targets amended. e. Because of the Fed's relative inability to convince Congress about the necessity of a particular monetary policy.
Engel's law suggests that the demand for food is
a. income inelastic b. income elastic c. price inelastic d. price elastic e. highly correlated with population size
If Mellon Bank has demand deposits of $6 billion and excess reserves of $50 million, and the reserve requirement is 10%, the bank's actual reserves are
A. $550 million. B. $600 million. C. $650 million. D. $1 billion.
A commodity that buyers and sellers both have will increase the efficiency of the market
Indicate whether the statement is true or false.