If the required reserve ratio is 0.2, and the Fed buys $3,000 of U.S. government securities, the maximum amount by which the money supply can increase is:
a. $200
b. $2,000.
c. $600.
d. $15,000.
e. $1,500.
d
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The above figure shows the market for steel ingots. The socially optimal quantity of steel is
A) 0 units. B) 50 units. C) 100 units. D) produced if the market were competitive.
In the short run, those who are hurt by the minimum wage are
a. some workers who lose their jobs b. employers who have to pay more c. consumers who have to pay more for goods d. all of these
Implicit costs
A. Are the value of resources used for which no direct payment is made. B. Are the total opportunity costs of resources and inputs used to produce a good. C. Represent actual monetary payments made for resources used to produce a good such as oil. D. Include only payments to workers and lenders.
Which of the following is true?
A. A flat dynamic aggregate demand curve corresponds to a flat monetary policy reaction curve and means that supply shocks will create small changes in current output. B. A flat dynamic aggregate demand curve corresponds to a steep monetary policy reaction curve and means that supply shocks will create large changes in current output. C. A flat dynamic aggregate demand curve corresponds to a steep monetary policy reaction curve and means that supply shocks will create small changes in current output. D. A flat dynamic aggregate demand curve corresponds to a flat monetary policy reaction curve and means that supply shocks will create large changes in current output.