By engaging in quantitative easing, the Fed is attempting to reduce the ________, causing the MP curve to ________
A) term premium and the real interest rate; shift down
B) unemployment rate and the inflation rate; shift down
C) short-term nominal and real interest rates; shift up
D) federal funds rate; shift up
A
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The graph illustrates the demand curve for soda. After a rise in the price of a soda from $1.00 a can to $2.00 a can, the quantity of soda demanded
A) decreases from 2 cans to 0 cans a day. B) increases from 0 cans to 2 cans a day. C) remains unchanged. D) decreases from 1 can to 0 cans a day. E) cannot be determined from the figure because the demand curve will shift to a new curve.
When a good is not excludable but is rival in consumption the:
A. free rider problem may arise. B. tragedy of the commons may arise. C. good is likely a private good. D. good is likely a common resource.
Three of the four events described below might reasonably be expected to shift the demand curve for beef to a new position. One would not shift that demand curve. The single exception is a(n):
a. change in people's tastes for beef. b. increase in the money incomes of beef consumers. c. fall in the price of beef. d. change in the price of a product competitive with beef (e.g. pork).
If perfectly competitive industry B is currently realizing economic profits, we would expect that:
a. industry output will fall, good B will fall in price, and economic profits will tend to disappear. b. industry output will fall, good B will rise in price, and economic profits will tend to disappear. c. industry output will rise, good B will fall in price, and economic profits will tend to disappear. d. industry output will rise, good B will fall in price, and economic profits will tend to increase.