Which of the following is true?
a. The money supply will tend to fall when the Fed pays a higher interest rate on bank reserves
b. If banks never wanted to hold excess reserves, decreasing the interest rate the Fed pays on reserves would not increase the money supply.
c. If banks hold excess reserves, the actual money multiplier would be less than potential money expansion.
d. All of the above are true
d
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Monopolistic competition is characterized by which of the following attributes: i. Many sellers ii. Product differentiation iii. Significant barriers to entry
a. (i) and (iii) only b. (i) and (ii) only c. (ii) and (iii) only d. (i), (ii), and (iii)
A nation's true gain from international trade is:
A. increased employment in export industries. B. an overall increase in output obtained through specialization and exchange. C. added technological knowledge. D. the tariff revenue that goes to the national treasury.