Author Question: The behavior of the Solow residual suggests that when current total factor productivity increases ... (Read 61 times)

NClaborn · **on:** Jun 30, 2018

The behavior of the Solow residual suggests that when current total factor productivity increases

A) it becomes more difficult to predict future total factor productivity.
B) future total factor productivity is also likely to increase.
C) such increases are temporary, so we can draw no conclusions about the likely behavior of future total factor productivity.
D) future total factor productivity is likely to decrease.

Question 2

Which of the following accurately describes the relationship between excess reserves and checkable deposits following the financial crisis of 2007-2009?

A) Excess reserves declined as the excess reserve ratio returned to near zero.
B) Excess reserves rose to nearly one-third of checkable deposits.
C) Excess reserves approached the same level as checkable deposits.
D) Excess reserves exceeded checkable deposits.