If the money market is in the liquidity trap, it is operating in the __________ segment of the __________ demand curve
A) vertical; investment
B) vertical; money
C) horizontal; investment
D) horizontal; money
D
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When the reserve requirement is increased, the excess reserves of member banks are ________.
A. reduced, but the multiple by which the commercial banking system can lend is unaffected B. reduced and the multiple by which the commercial banking system can lend is reduced C. reduced and the multiple by which the commercial banking system can lend is increased D. increased and the multiple by which the commercial banking system can lend is increased
If the price of a certain brand of sneakers falls from $27.50 to $22.50, and the quantity demanded by consumers increases from 15 to 25 pairs per week, then the price elasticity of demand is
a. 0.25 b. 1.00 c. 2.75 d. 1.50 e. 2.50
Today, reserve requirements are:
A. changed instead of making changes in the discount rate. B. really not a direct tool of monetary policy. C. changed whenever the target federal funds rate is changed. D. set in a way that makes reserve demand highly unpredictable.
A decision by Congress to reduce spending in order to balance the government's budget is an example of ________ policy.
A. monetary B. fiscal C. structural D. aggregation