Answer the following questions true (T) or false (F)
1. The Federal Reserve can combat an inflationary gap in the economy by buying government securities in the nation's capital markets.
2. An increase in aggregate demand in the normal range of the economy's aggregate supply curve will increase the general price level in the economy.
3. The goal of macroeconomic policy is to combat inflationary and recessionary gaps which exist in the nation's money market.
1. TRUE
2. TRUE
3. FALSE
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Which of the following must a firm in a market economy do today to succeed?
A) efficiently organize production B) produce existing goods and services at a lower cost C) produce new or better goods or services D) Market firms today must do all of these things.
The rate at which banks will lend Eurodollars is
A) the prime rate. B) LIBOR. C) the discount rate. D) LIBID.
Most people who earn the minimum wage are poor
Indicate whether the statement is true or false
In the long-run, all costs are
a. Fixed costs b. Variable costs c. Sunk Costs d. Marginal Costs