If excess reserves are too large, a bank is likely to
A. Borrow in the federal funds market.
B. Borrow reserves from the discount window.
C. Buy government securities.
D. All of the choices are correct.
Answer: C
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Employing a general-equilibrium approach, describe the effect of a new law that prohibits steel imports
What will be an ideal response?
The portion of the public debt held outside federal agencies and the Federal Reserve is:
A. equally split between U.S. and foreign lenders. B. smaller than the portion held by federal agencies and the Federal Reserve. C. all held by foreign lenders. D. larger than the portion held by federal agencies and the Federal Reserve.
Let's assume that two countries have imposed high tariffs on each other's products and services to the point where all trade between the two countries has disappeared
Assume a newly elected member of parliament in one of the countries makes a proposal for unilateral tariff reduction regardless of whether the other country wishes to follow suit. Explain why such a policy change would actually be a good idea.
If supply decreases while demand is unchanged, the equilibrium price ____ and the equilibrium quantity ____. Question 16 options:
A. does not change; does not change B. rises; decreases C. rises; increases D. falls; increases