Which of the following monetary policy tools is more effective when the economy faces the interest rate zero-lower-bound problem?
A) open market operation
B) discount policy
C) required reserve ratio
D) the Fed's liquidity provision
D
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A) Sam pays $600 for 30 days of guitar classes. He attends an hour-long class every day. If, instead of attending class, he works at a part-time job, he would be paid $5 an hour. Or, he could work at a fast-food outlet and earn $9 per hour
Once he has already paid a nonrefundable fee of $600 to enroll in the class, what is his opportunity cost of attending each hour of class? b) Suppose workers decide to work more and consume less leisure when their hourly wage rate increases. What could explain this behavior?
In the case of national defense protection, ________ is a better policy than protection
A) a production subsidy combined with free trade B) an income tax C) direct government provision of infrastructure D) None of the above is better
A binding minimum wage creates unemployment
a. True b. False Indicate whether the statement is true or false
The opportunity cost to a city for using local tax revenues to construct a new park is the:
A. best alternative foregone by building the park. B. dollar cost of constructing the new park. C. dollar cost of the old park. D. increased taxes necessary to pay for maintenance of the new park.