Which of the following will increase commercial bank reserves?
A. The purchase of government bonds in the open market by the Federal Reserve Banks.
B. An increase in the discount rate.
C. A decrease in the reserve requirement.
D. An increase in the federal funds rate.
Answer: A
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A subgame-perfect equilibrium is a Nash equilibrium that
a. cannot persist through several periods. b. involves only credible threats. c. consists only of dominant strategies. d. is unique.
Which of the following statements is true regarding the opportunity cost of time?
a. Retired people are more likely to visit supermarkets than farmers' markets. b. Students are more likely to visit farmers' markets even during exams. c. Working professionals are more likely to frequent convenience stores. d. The opportunity cost of time for farmers and buyers participating in the farmers' market is usually very high.
Fixing the insolvency problem caused by the Great Recession, the U.S. Federal Reserve as reluctant to purchase toxic assets from banks because:
a. It would transfer the problem to the Federal Reserve but might not solve the underlying causes. b. Toxic security purchases had to be funded, and the Fed already had a major debt problem. c.The Fed could be accused of nationalizing the U.S. financial system. d. All of the above.
If the price of a good is expected to rise in the future, its
A. demand curve will shift to the right. B. supply curve will shift to the left. C. demand curve will shift to the left. D. a) and b).