When the Federal Reserve makes more money available for banks to lend, the demand curve for loans shifts to the right.
Answer the following statement true (T) or false (F)
False
When the Federal Reserve makes more money available for banks to lend, the supply curve for loans shifts to the right.
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A bank's reserves
A) can be held as deposits with the Federal Reserve. B) are the sum of its excess and required reserves. C) can be held as cash in its vault. D) all of the above.
Refer to Figure 12-3. Suppose the prevailing price is P1 and the firm is currently producing its loss-minimizing quantity. Identify the area that represents the loss
A) P2 deP1 B) P3cbP1 C) 0P1 bQ1 D) P3caP0
An excise tax
A) acts as a negative incentive to consume that good or service. B) is illegal in Florida, Georgia, and Alaska. C) is often used to encourage the use of a good. D) is a value added tax (VAT).
Total costs increase from $1500 to $1800 when a firm increases output from 40 to 50 units. Which of the following are true?
a. AVC rise by $300 b. AVC rise by $1800 c. AVC rise by $1500 d. AVC rise by $0