The Fed buys securities and gives the bank a check for the amount. After the check has cleared,
A) reserves remain unchanged because the increase of reserves at the bank are offset by an increase in reserves at the Fed.
B) reserves have decreased by the amount of the check because the Fed pays for the check by decreasing the bank's deposits at the Fed.
C) reserves have increased by the amount of the check because the Fed pays for the check by increasing the amount of the bank's deposits with the Fed.
D) reserves have increased by the amount of the reserves multiplied by the required reserve ratio, and the quantity of money increases by the difference between the amount of the check and the increase in the reserves.
C
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In the development of the IS curve, one variable that turns from exogenous to endogenous is
A) the interest rate. B) the price level. C) consumption. D) saving. E) investment.
The HHI is calculated by summing the square of the percentage shares of the firms in the market.
Answer the following statement true (T) or false (F)
Between August 2007 and July 2008, Brazil exported more than 3.5 billion pounds of coffee to the rest of the world. These exports mean that
A) Brazil has comparative advantage in coffee production. B) the rest of the world has comparative advantage in coffee production. C) the rest of the world has absolute advantage in coffee production. D) Brazil has absolute advantage in coffee production.
Producer surplus is the difference between the highest price a firm is willing to accept for a product and the price it actually receives for the product
Indicate whether the statement is true or false