If the banking system has a large amount of reserves, many banks will have excess reserves to lend and the federal funds rate will probably ________; if the level of reserves is low, few banks will have excess reserves to lend and the federal funds
rate will probably ________. A) fall; fall
B) fall; rise
C) rise; fall
D) rise; rise
B
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In the United States, the percentage of part-time workers who would like full-time work
A) increases in recessions and decreases in expansions. B) changes very little from expansion to recession. C) in 2013 was almost 100 percent of all part-time workers. D) Both answers A and C are correct. E) Both answers B and C are correct.
Excess capacity and inefficiency result under monopolistic competition.
Answer the following statement true (T) or false (F)
If the Fed conducts open-market sales, the money supply
a. increases and aggregate demand shifts right. b. increases and aggregate demand shifts left. c. decreases and aggregate demand shifts right. d. decreases and aggregate demand shifts left.
What is the definition of an oligopoly?
a) one firm producing 95 percent of the output b) two to four firms producing 70 percent to 80 percent of the output c) eight to ten firms producing 60 percent to 70 percent of the output d) eight to ten firms producing 90 percent of the output