A sudden expectation of future depreciation of the dollar causes funds to flow __________ the United States and the dollar to actually __________
A) out of; depreciate
B) out of; appreciate
C) into; depreciate
D) into; appreciate
A
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If the absolute value of the price elasticity of demand for cell phone service is 3, then if the price of cell phone service increases by 1%, quantity demanded would:
A. decrease by 3%. B. increase by 3%. C. increase by 0.33%. D. decrease by 0.33%.
Moral suasion is
a. the minimum amount of reserves the Fed can persuade a bank to hold b. the interest rate that the Fed can morally charge banks who borrow from it c. the interest rate on loans made by banks to other banks d. the maximum percentage of the price of a stock that can be borrowed from a bank, with the stock offered as persuasive evidence of collateral e. an appeal by the Fed to banks, asking for voluntary compliance with the Fed's policies
The demand for labor by a profit-maximizing firm is determined by:
A. VMPL = W. B. MPL = W. C. MPL = MC. D. VMPL = MC.
Suppose a credit union has checkable deposits of $500,000 and the legal reserve ratio is 10 percent. If the institution has excess reserves of $4,000, then its actual reserves are:
A. $46,000. B. $50,000. C. $54,000. D. $4,000.