Expectations of inflation are assumed to be constant at each point on a given short-run Phillips curve.
Answer the following statement true (T) or false (F)
True
See the definition of the short-run Phillips curve in the text.
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Which of the following are not thrift institutions?
A) Savings and loan associations (S&Ls) B) Mutual savings banks C) Money market mutual funds D) Credit unions
Suppose the banking system as a whole has $600 billion in deposits and $66 billion in reserves, with a reserve ratio of 11 percent. What happens to the stock of money if the Fed lowers reserve requirements by changing the reserve ratio to 10 percent?
Suppose the interest rate is 3% and that you are to receive three annual payments of $1,000, with the first payment today, the second payment one year from now, and the third payment two years from now. What is the present value of this stream of payments?
If the required reserve rate is ten percent and banks do not hold any excess reserves and there are no changes in currency holdings, a $1 million open market purchase by the Fed will result in what change in loans?
A. An increase of $10 million B. No change C. An increase of $1 million D. A decrease of $1 million