Which of the following is not a consequence of the Fed changing the reserve requirement?
A) Changes in the ratio are easily incorporated into banks' routine management.
B) Changes in the ratio effectively places a tax on banks' deposit taking and lending activities.
C) Decreasing the ratio will increase excess reserves.
D) Increasing the ratio will decrease the amount of reserves banks have to loan.
A
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The minimum level of income per person that is generally necessary for the individual to obtain enough calories, shelter, and clothing to survive is referred to as:
A) safety level of income. B) survival wage rate. C) subsistence level of income. D) minimum wage rate.
All of the following are assumptions of monopolistic competition EXCEPT
A) many buyers and sellers. B) homogeneous product. C) easy entry of new firms in the long run. D) profit-maximizing behavior.