Changes in which of the following will cause changes in the equilibrium federal funds rate?
A. the supply of reserves created through past open market operations
B. the demand for excess reserves by banks
C. the demand for required reserves by banks
D. all of these
Answer: D
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If Country A's real GDP is growing at 6 percent per year and Country B's real GDP is growing at 6 percent per year, then the standard of living is
A) growing more rapidly in Country A. B) higher in Country B. C) changing at the same rate in Country A and Country B. D) growing more slowly in Country A. E) changing at the same rate in Country A and Country B only if the rate of population growth is the same in both countries.
A Tiebout model involves
A. completely mobile individuals. B. governments generating no externalities. C. perfect information. D. all of these answer options are correct.
An increase in the marginal factor cost of labor will
A) lead to an increase in the quantity demanded of labor. B) induce a firm to hire fewer workers. C) lead to an increase in the value of an additional worker. D) cause the value of the marginal product of labor to increase.
A report on GDP says that income fell. Then spending measured by GDP __.
A. might have risen B. must have risen C. might have fallen D. must have fallen