If the Fed lowers its target for the federal funds rate, this indicates that
A) the Fed is pursuing an expansionary monetary policy.
B) the Fed is pursuing a contractionary monetary policy.
C) the Fed is attempting to combat inflation.
D) the Fed is concerned that the growth in aggregate demand will exceed potential GDP.
Answer: A
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The beneficiaries of the minimum wage are confined to those in poverty
a. True b. False
The price-consumption curve: a. connects the various combinations of two goods as a consumer's income changes
b. connects the various combinations of two goods as the relative price of one good changes. c. shows the quantity of a good consumed as a function on income. d. All of the above are correct statements.
An example of an oligopoly is: a. the restaurant industry. b. the wheat market
c. the cigarette industry. d. the beef industry.
The value of a real option varies with all of the following, EXCEPT:
a. the range of outcomes. b. the rate of interest. c. the rate of unemployment. d. the delay in resolving uncertainty.