A change in Federal Reserve monetary policy will:
A. have no effect on the Security Market Line.
B. invert the Security Market Line.
C. change the slope of the Security Market Line.
D. cause a vertical shift of the Security Market Line.
D. cause a vertical shift of the Security Market Line.
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Explain how and why economic events in the United States affected the economies of Thailand, South Korea, and Indonesia and vice-versa.
What will be an ideal response?
Refer to the diagram. The equilibrium price and quantity in this market will be:
A. $1.00 and 200.
B. $1.60 and 130.
C. $0.50 and 130.
D. $1.60 and 290.
Explain how discouraged workers either overstate or understate the unemployment problem.
What will be an ideal response?
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. How much does Kate produce in the Nash equilibrium?
A. 2,000 B. 1,333.33 C. 800 D. 4,000