The reserve demand schedule is drawn on a graph that has the quantity of reserves on the horizontal axis and
A. the price level is on the vertical axis.
B. the federal funds rate is on the vertical axis.
C. the price of bonds is on the vertical axis.
D. income is on the vertical axis.
Answer: B
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The marginal social cost (MSC) curve
a. lies above the market demand curve b. lies below the market supply curve c. is perfectly elastic at the market price d. is perfectly inelastic e. indicates the total cost of production, when all costs are considered
For an economy to be in equilibrium at full employment is, according to Keynes,
a. the natural result of the economy process b. always the result of government intervention c. strictly a matter of historical accident d. a matter of convincing investors to match the level of saving in the economy e. an unattainable goal