If Bank A sells a $100,000 U.S. Treasury bond to the Fed, Bank A's reserves will:
A. increase by $100,000.
B. not change.
C. decrease.
D. increase by less than $100,000.
Answer: A
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According to the above figure, at an income level of Y1,
A) the economy saves an amount equal to BD. B) the economy dissaves an amount equal to BD. C) the average propensity to save is greater than one. D) the marginal propensity to save is falling.
Critics of flexible exchange rates argue that flexible rates: a. reduce uncertainty in international trade
b. automatically create an equilibrium price for each currency in the foreign exchange market. c. make nations more constrained in carrying out internal macroeconomic policies. d. increase uncertainty in international trade.
When supply is fixed or the product is unique, then price is
A. supply determined. B. government determined. C. demand determined. D. indeterminate.
The demand curve for a public good is also called the
A) total social benefit curve. B) total welfare curve. C) total willingness-to-pay curve. D) marginal social benefit curve.