Within the European Central Bank, banks with excess reserves:
A. can deposit them with the ECB and earn an interest rate below the target refinancing rate.
B. must deposit the excess with the ECB's Deposit Facility.
C. earn no interest on excess reserves, similar to the system in the U.S.
D. none of the above answers is correct; there are no required reserves for the ECB and so therefore no excess reserves.
Answer: A
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Refer to Table 26-2. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy
If the Fed wants to keep real GDP at its potential level in 2017, it should A) increase income taxes. B) buy Treasury securities. C) increase the required reserve ratio. D) sell Treasury securities.
Other things equal, if the wage rates paid to a firm's labor inputs were to rise, we would expect the:
A. AFC, AVC, ATC, and MC curves all to rise. B. AVC, ATC, and MC curves all to rise. C. AFC and ATC curves to fall. D. MP curve to fall.
Technological improvements cause
A. Existing firms to produce more output. B. Some firms to exit but the remaining firms to produce more output. C. New firms to enter but existing firms to continue producing their old output levels. D. Existing firms to continue producing their old output levels but to lower the price of the products.
Price controls in Venezuela resulted in a thriving black market in many goods. The black market arose because the price controls that were implemented by the Venezuelan government were ________ which resulted in a ________ of products
A) price floors; surplus B) price floors; shortage C) price ceilings; surplus D) price ceilings; shortage