If the Fed wishes to maintain its interest rate target in the face of increased money demand it would likely
a. increase the money supply.
b. decrease the money supply.
c. more stringently enforce already existing banking regulations.
d. propose new banking regulations.
e. become more lax when it enforces already existing banking regulations.
A
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The per-worker production function shows the relationship between ________ per hour worked and ________ per hour worked, holding ________ constant
A) capital; labor; real GDP B) capital; real GDP; technology C) labor; capital; real GDP D) labor; real GDP; technology
In a price-leadership oligopoly model, the oligopoly firms engage in price wars
a. True b. False Indicate whether the statement is true or false
Lou and Toby both live in a little town and are trying to sell their cars. Both of their cars have a blue book value of $10,000. Lou has an American car like most of the people in town own. Toby owns the only Bulgarian car in town. If people in their town are risk averse, then who will get closest to the blue book value for his car?
A. Lou will because American cars are better than Bulgarian cars. B. Both should get the same price for their cars because both cars have the same blue book value. C. Toby will because there is less uncertainty about the quality of Lou's car. D. Lou will because there is less uncertainty about the quality of Lou's car.
If the buyer commits $100,000 of his or her own funds and borrows $900,000 to purchase $1 million in assets, then the leverage ratio is
A. 10 to 1. B. 25 to 1. C. 9 to 1. D. 5 to 1.