The Fed pays banks interest on bank deposits held on reserve at the Fed
Indicate whether the statement is true or false
False
You might also like to view...
Use the following graph showing the average total cost curve for a perfectly competitive firm to answer the next question.
At the long-run equilibrium level of output, this firm's total cost
A. is $10. B. is $400. C. is $40. D. cannot be determined from the information provided.
In the short run, monopolistically competitive firms:
A. can earn positive economic profits by acting like a monopolist. B. can earn positive economic profits by acting like a perfectly competitive firm. C. will earn zero economic profits by acting like a monopolist. D. will earn zero economic profits by acting like a perfectly competitive firm.
Which of the following is not held constant as you move along the demand curve?
A. The price of that good B. The incomes of consumers C. The price of other goods D. The preferences of consumers for the good
Assuming no change in the effort curve of employees, the efficiency wage model implies that
A. an increase in the marginal productivity of capital will increase the real wage. B. the real wage exceeds the marginal productivity of labor. C. the real wage is procyclical. D. the real wage is rigid and equals the efficiency wage.