Federal funds market rate is:
a. the rate at which central bank provides funds to commercial banks
b. the rate charged by banks on loans to the public.
c. the rate charged on loans from one bank to another provided to meet reserve requirement.
d. higher than the discount rate.
c
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An increase in the required reserve ratio will lead to a/an:
a. increase in the monetary base. b. increase in the money multiplier. c. increase in the money supply. d. both b and c. e. both a and c.
Specialization and trade do not allow individuals, firms, or even nations to acquire goods that lie beyond their production capabilities
a. True b. False Indicate whether the statement is true or false
If a perfectly competitive industry uses only a small share of the available inputs in a resource market, then the long-run market supply curve for the industry will most likely be: a. vertical
b. horizontal. c. upward sloping. d. downward sloping.
In the market for a given product, when a price floor is set above the equilibrium price the result will be
A) more exchanges made in the market. B) an increase in the supply of the product. C) a decrease in the demand for the product. D) a deadweight loss.