Everything else held constant, in the market for reserves, when the federal funds rate is 3%, increasing the interest rate paid on excess reserves from 1% to 2%
A) lowers the federal funds rate.
B) raises the federal funds rate.
C) has no effect on the federal funds rate.
D) has an indeterminate effect on the federal funds rate.
C
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A price elasticity of demand of 2.3% implies
a. Demand is inelastic b. Demand is elastic c. Demand is unitary elastic d. Demand is perfectly elastic
For a given price level, the aggregate expenditure line relates unplanned spending to the level of government investment in the economy
Indicate whether the statement is true or false
How is real GDP per capita calculated?
a. Divide real GDP by the total population. b. Multiply real GDP by 100. c. Divide real GDP by 100. d. Multiply the real GDP by the total population.
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 ? 5,000P + 25MQs = 240,000 + 5,000P ? 2,000PIwhere P is price, M is income, and PI is the price of a key input. The forecasts for the next year are 
= $15,000 and 
I = $20. Average variable cost is estimated to beAVC = 14 ? 0.008Q + 0.000002Q2Total fixed cost will be $6,000 next year. Suppose that income next year is forecasted to be $10,000 instead. What is the revised price forecast for next year?
A. $7.50 B. $10.50 C. $12.00 D. $5.00 E. $15.75