Many ____________________would have gone out of business without subsidies

Everything else held constant, in the market for reserves, when the federal funds rate is 3%, increasing the interest rate paid on excess reserves from 1% to 2%

A) lowers the federal funds rate. B) raises the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect on the federal funds rate.

The country Autarka does not allow international trade. In Autarka, you can buy a wool suit for 3 ounces of gold. Meanwhile, in neighboring countries, you can buy the same suit for 2 ounces of gold. This suggests that

a. Autarka does not have a comparative advantage in producing suits and would become a suit importer if it opened up trade. b. Autarka has a comparative advantage in producing suits and would become a suit importer if it opened up trade. c. Autarka does not have a comparative advantage in producing suits and would become a suit exporter if it opened up trade. d. Autarka has a comparative advantage in producing suits and would become a suit exporter if it opened up trade.