If the nominal GDP were to increase, but the real GDP were to increase by less from one year to the next, we could conclude:
A. prices went up, but output stayed the same.
B. prices stayed the same, but output went up.
C. both prices and output went up.
D. both prices and output stayed the same.
C. both prices and output went up.
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If the Fed lowered the required reserve ratio,
a. excess reserves would decrease b. the money supply would decrease c. the money supply would increase d. banks would borrow more from the Fed e. loans would earn more interest
Which of the following is true for a profit-maximizing competitive firm in the long run but not a monopolist?
A. MC = MR. B. MC = P. C. AR = P. D. Q > 0.
Any reserves held by a bank above the amount of minimum legal reserves are called
a. total reserves. b. required reserves. c. fiat money. d. excess reserves.
If the price level rises, what will happen to the demand for reserves?
a. It will shift outward. b. It will shift inward. c. It will remain unchanged. d. It depends on what happens to interest rates.