The more excess reserves banks choose to keep
A) the lower the required reserve ratio. B) the smaller the deposit multiplier.
C) the larger the deposit multiplier. D) the higher the required reserve ratio.
B
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A profit-maximizing monopolist will never operate in the portion of the demand curve with price elasticity equal to
A) -3. B) -1. C) -1/3. D) None of the above—the price elasticity does not matter.
Recessions are identified by
a. severe and long-lasting phases of decreased output b. high employment c. constant output d. decreasing output e. low unemployment
With respect to controlling the money supply, the law requires the Fed to take orders from:
a. the President. b. the Speaker of the House. c. no one--the Fed is an independent agency. d. the Secretary of the Treasury.
If there is a surplus at a given price, then
A. The market is in equilibrium at that price. B. That price is lower than the equilibrium price. C. That price is greater than the equilibrium price. D. The price is zero.