The demand for reserves is __________ related to the federal funds rate because banks __________ their excess reserves as the federal funds rate falls
A) inversely; increase
B) inversely; decrease
C) positively; increase
D) positively; decrease
A
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In the New Keynesian open economy model
A) the nominal exchange rate is always fixed. B) prices are flexible. C) net exports depends on the relative price of foreign goods to domestic goods. D) the nominal exchange rate is always flexible.
In which of these markets would the firms be facing the least elastic demand curve?
A) perfect competition B) pure monopoly C) monopolistic competition D) oligopoly
The federal government _______ securities (treasury bonds, notes, and bills) to cover its budget deficits.
a. buys b. sells c. trades d. creates
The economic profit earned by a firm is calculated by subtracting explicit costs from total revenue
a. True b. False Indicate whether the statement is true or false