The Fed responds to money demand shocks by
a. changing the velocity of money
b. changing the money supply
c. following the money creation rules responsible for its success in the past two decades
d. increasing the required reserve ratio
e. changing its definition of the natural rate of unemployment
B
Economics
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Assuming all excess reserves are loaned out, if the reserve ratio is 40 percent, the money multiplier will be equal to
A) 2. B) 2.5. C) 4. D) 6.
Economics
If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then the deadweight loss from monopoly equals
A) $21. B) $441. C) $882. D) $1,764.
Economics