There is a surplus in a market for a product when:
a. The increase in demand is greater than the decrease in supply
b. Quantity supplied is less than quantity demanded
c. Quantity demanded is less than quantity supplied
d. The decrease in supply is greater than the increase in demand
c. Quantity demanded is less than quantity supplied
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The investment function is represented by
A) an inverse relationship between the interest rate and the value of planned investment. B) the direct relationship between the interest rate and the value of planned investment. C) the indirect relationship between taxes and government spending. D) the direct relationship between taxes and government spending.
In the event that nominal short-term interest rates cannot be lowered further, the Federal Reserve might rely on ________
A) federal government fiscal policy B) targeting the fed funds rate C) quantitative easing D) targeting the inflation rate
The problem of "double marginalization" is
a. The retail price being too high due to an inclusion of both manufacturer and retailer markup b. The retail price being too low due to an exclusion of both manufacturer and retailer markup c. The retail price being too high due to an exclusion of manufacturer markup d. The retail price being too low due to an exclusion of retailer markup
The required reserve ratio in an economy is 16 percent. If two banks, Bank A and Bank B, receive deposits of $50,000 and $75,000 . respectively, then the value of the money multiplier in the economy is: a. 10.00. b. 12.50. c. 6.25
d. 8.00.