The Federal Reserve was established in 1913 to
A) prevent inflation by decreasing the money supply.
B) stimulate the economy by increasing bank reserves.
C) stop bank panics by acting as a lender of last resort.
D) prevent bad loans by requiring banks to hold reserves.
Answer: C
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Jim saw a decrease in the quantity demanded for his firm's product from 800 . to 600 . units a week when he raised the price of the product from $200 to $250 . What is Jim's own price elasticity of demand?
a. 1.29 b. 1 c. 0.25 d. 0.78
Which of the following events illustrates the U.S. dollar strengthening against the euro?
a. The exchange rate changes from $1 = 1 euro to $1 = 3 euros. b. The exchange rate changes from $1 = 3 euros to $1 = 2 euros. c. The exchange rate changes from $1 = 1 euro to $2 = 1 euro. d. The exchange rate changes from $1 = 2 euros to $3 = 3 euros.
Refer to the information provided in Figure 24.1 below to answer the question(s) that follow.
Figure 24.1Refer to Figure 24.1. Suppose that the consumption function is C = 400 + 0.5Yd and taxes are $200 billion, at equilibrium, what is the value of consumption?
A. $2,000 B. $1,350 C. $1,300 D. $1,150
Economic growth is defined as:
A) an increase in the level of consumption. B)an increase in either real GDP or real GDP per capita. C) an increase in the overall general price level. D) an increase in the nominal GDP.