Which of the following combinations would produce conflicting effects on the supply of money?
a. The Fed pays a higher interest rate on bank reserves and increases the required reserve ratio
b. The Fed conducts an open market purchase of government securities and raises the discount rate.
c. The Fed pays a lower interest rate on bank reserves and conducts an open market purchase of government securities.
d. All of the above would produce conflicting effects on the supply of money
d
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If the demand for a good is determined to be "unit elastic," then the elasticity measure
A) is greater than 1.0. B) is equal to 1.0. C) is less than 1.0. D) is infinite.
A cutback in the space program due to a slow economy causes an increase in unemployment among aeronautical engineers. This is an example of
A) cyclical unemployment. B) frictional unemployment. C) seasonal unemployment. D) structural unemployment.
Distinguish the short run from the long run. Generally, what causes costs of production to vary with output in the short run? What generally causes costs of production to vary in the long run?
Theresa opens a 5-year CD for $1,000 that pays 2% interest compounded annually. What is the value of the CD at the end of the 5 years?
a. $1,104.08 b. $1,100.00 c. $1, 020.00 d. $1,220.10