In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, a ________ in the reserve requirement increases the demand for reserves, ________ the federal funds interest rate,
everything else held constant. A) rise; lowering
B) decline; raising
C) decline; lowering
D) rise; raising
D
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The theory of relative backwardness
a. formulated by Rostow b. called for substitutions for missing preconditions c. explained the industrial revolution d. was an idea of Gerschenkron e. both b and d are correct
An assumption behind the infant industry argument for tariff protection is that
A) foreign competitors are selling output below average cost. B) the domestic industry will be facing an upward adjustment in its average cost. C) the domestic industry will eventually gain comparative advantage in producing the good. D) the market needs additional competition to satisfy consumer demand.
By 2016, the unemployment rate in the US had fallen from a peak of 10% in 2009 to:
A. under 5%. B. 7.8%. C. 6.2%. D. under 3%.
Transaction costs reduce the benefit accruing to the parties involved in an exchange. Explain why