The Fed prefers that ________ so that ________
A) banks borrow reserves from each other; banks can monitor each other for credit risk
B) banks borrow reserves from each other; the Fed can monitor banks for credit risk
C) banks borrow reserves from the Fed; banks can monitor each other for credit risk
D) banks borrow reserves from the Fed; the Fed can monitor banks for credit risk
A
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According to the misperceptions theory, when P < Pe, output is ________ its full-employment level and the short-run aggregate supply curve must shift ________ to restore full employment
A) below; upward B) below; downward C) above; upward D) above; downward
Standardized products can appear:
A. only in perfectly competitive markets. B. in perfectly competitive and monopolistically competitive markets. C. in monopolistically competitive and oligopoly markets. D. in perfectly competitive and oligopoly markets.