Crowding out will be more pronounced the closer to vertical is the
A) IS curve.
B) LM curve.
C) consumption function.
D) aggregate demand function.
B
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Which of the following is NOT a characteristic of a private good?
a. rivalry in consumption b. benefits of consumption are nonexcludable c. consumption of the good precludes consumption by another individual d. the benefits to a consumer of consuming the good are exclusive to that individual
In addition to insuring accounts, the FDIC today has the additional power of
A) establishing the discount rate. B) establishing FOMC goals. C) establishing higher capital requirements for banks. D) setting reserve requirements.
If a single bank has $25,000 in excess reserves and the desired reserve ratio is 20 percent, what is the maximum this bank can loan?
A) $125,000 B) $20,000 C) $5,000 D) $30,000 E) $25,000
Suppose an entrepreneur commits to a production schedule but underestimates the market price for his products. What will be true about his current level of production?
a. Losses will be very high. b. Marginal cost will be less than marginal revenue. c. Marginal cost will be more than marginal revenue. d. Average total cost will exceed price. e. Total fixed costs will be too low.