The Fed can exert more precise control over ________ than it can over ________
A) high-powered money; reserves
B) high-powered money; the monetary base
C) the monetary base; high-powered money
D) reserves; high-powered money
A
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Discuss some of the reasons why economists are concerned about the current recovery from the global financial crisis
What will be an ideal response?
Which of the following will cause movement along the reserve demand schedule?
a. a change in the price level b. a change in real GDP c. a change in tax rates d. a change in interest rates
Which of the following is not a reason to expect the slope of a consumer's indifference curve for current and future consumption to be greater than 1 with an endowment along the 45° line?
a. People are naturally impatient. b. One is never sure if he will be alive in the future. c. A unit consumed today offers memories of consumption into the future. d. A decline in interest rates.
Davy's Doggie Daycare rents a warehouse and field for $2,000 a month to house its boarding pooches. Farmer Fred owns the property, he used to use it for farming and made $3,000 a month, but has since retired. What is the cost of the warehouse and field to Davy?
A. It is an implicit cost of $3,000. B. It is an explicit cost of $2,000. C. There is both an explicit and implicit cost totaling $5,000. D. It is an implicit cost of $0.