In the long run,hotel room prices that are falling as a result of excess supply will ______ the quantity of hotel rooms supplied in a market.
A. have no effect on
B. increase
C. eliminate
D. decrease
Answer: D
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Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve raises the required reserve ratio to 12 percent, then the bank will now have excess reserves of
A) $12,000. B) $0. C) -$2,000. D) -$12,000.
According to the monetarists, deliberate government intervention:
a. will stabilize the economy if the money supply is increased during recessions and decreased during expansions. b. will effectively reduce the unemployment rate below its natural rate. c. will stabilize the economy if the money supply is reduced during recessions and increased during expansions. d. will destabilize the economy only if the government uses fiscal policy to change equilibrium income. e. will destabilize the economy and cause a business cycle of its own, regardless of whether fiscal or monetary policy is used.
The group responsible for making decisions regarding monetary policy is the:
A. Federal Open Market Committee. B. Board of Governors only. C. Federal Advisory Council. D. group of 12 Federal Reserve Bank presidents only.
Refer to the tables. Which one of the following terms of trade would be acceptable to both countries?
Answer the question on the basis of the following production possibilities tables for countries Alpha and Beta:
A. 1 unit of X for 3 units of Y.
B. 1 unit of X for 5 units of Y.
C. 1 unit of X for 12 units of Y.
D. 1 unit of X for 1 unit of Y.