The Federal Reserve conducts
A. only monetary policy.
B. only fiscal policy.
C. both monetary and fiscal policy.
D. neither monetary nor fiscal policy.
A. only monetary policy.
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According to research by Richard Sylla and John James on western farm mortgage rates,
a. real rates were lower than rates charged to eastern manufacturers. b. relatively high real rates were due to the monopoly power of eastern financiers. c. relatively high rates reflected high lending risks associated with agricultural loans. d. Farmers' nominal rates were high, but real rates were actually less than those charged for most loans.
Under low-cost contracting like that between beekeepers and farmers, the agreement between the two parties is not self-enforcing because:
a. the terms of contract are laid down by a third party. b. the initial distribution of rights between the two parties is unequal. c. services and payments take place over a span of time, and either might choose to default on his obligations at some point. d. the contract distributes gross revenue between the two parties unequally.
Some of the benefits of globalization include
A) increased international trade. B) greater income per person. C) lower prices for goods. D) greater product variety. E) all of the above
]Which of the following describes what would happen after a positive supply shock such as a decrease in world oil prices?
a. An upward shift of the aggregate supply curve as unit costs increase, followed by a gradual decrease in the wage as employment decreases, leading to a downward shift of the aggregate supply curve. b. A downward shift of the aggregate supply curve as unit costs decrease, followed by a gradual increase in the wage as employment increases, leading to an upward shift of the aggregate supply curve. c. An upward shift of the aggregate supply curve as unit costs increase, followed by a gradual decrease in the wage as employment decreases, leading to an upward shift of the aggregate supply curve. d. A downward shift of the aggregate supply curve as unit costs decrease, followed by a gradual decrease in the wage as employment decreases, leading to a downward shift of the aggregate supply curve. e. An upward shift of the aggregate demand curve.