In the circular flow model, households
A) sell goods and services in the input market.
B) and firms spend earnings from resource sales on goods and services in the factor market.
C) hire resources sold by firms in the factor market.
D) spend earnings from resource sales on goods and services in the product market.
Answer: D
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Everything else held constant, in the market for reserves, when the demand for federal funds intersects the reserve supply curve along the horizontal section, increasing the discount rate
A) increases the federal funds rate. B) lowers the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect on the federal funds rate.
When we move along a given demand curve,
a. only price is held constant. b. income and price are held constant. c. all nonprice determinants of demand are held constant. d. all determinants of quantity demanded are held constant.
Demand deposits $300 million Time deposits: Original maturity (less than 18 months): $200 million Original maturity (over 18 months): $400 million Use the information above to find the bank's required reserves.
What will be an ideal response?
Assume the demand function for skin care products is given by Q = 1,000 - 20 P + 5I. If P=$25 and I=$1,000 currently, then
A. the elasticity of demand is equal to 10. B. the elasticity of demand is equal to 11. C. skin care products are inferior goods. D. skin care products are normal goods.