If the Fed lowers the discount rate (relative to the federal funds rate), banks will (likely) borrow __________ from the Fed, which will __________ reserves in the banking system, and eventually __________ the money supply
A) less; decrease; lower
B) more; increase; raise
C) the same amount; not change; lower
D) more; decrease; raise
E) none of the above
B
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Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above. The base year is 2012. In 2013, which is larger, nominal GDP or real GDP?
A) Both are the same size. B) Nominal GDP is larger. C) Real GDP is larger. D) The answer is ambiguous. E) More information is needed to determine which is larger.
Suppose consumer preference for beef starts to rise while the cost of raising beef continues to rise. In the market for beef, this would be represented by the equilibrium price ________ and the equilibrium quantity ________
A) increasing; increasing or decreasing B) increasing or decreasing; increasing C) decreasing; increasing or decreasing D) increasing or decreasing; decreasing
The demand equation for a single price monopolist is P = 120 - 3Q. The marginal revenue curve for this monopolist is
A. 120 - 1.5Q. B. 60 - 6Q. C. 60 - 3Q. D. 120 - 6Q.
?Which of the following is not true about the U.S. trade balance since 1979?
a. The balance of trade has been in deficit.
b. During recessions the balance has usually been flat.
c. The balance of trade has been in surplus.
d. When the economy expanded, the demand for imports increased.
e. When the economy expanded, the trade balance worsened.