Which of the following policy actions by the Fed would cause the money supply to increase?
a. An open market sale of government securities.
b. An increase in required reserve ratios.
c. An increase in the discount rate.
d. An open-market purchase of government securities.
d
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For most firms, the costs of energy and raw materials will be total fixed costs
a. True b. False Indicate whether the statement is true or false
Which of the following is an endogenous variable in the Three-Sector-Model?
a. A change from flexible to fixed exchange rates b. Wars c. Domestic quantity of real credit per time period d. Oil prices e. All of the above are endogenous
In this graph, how does DLR compare to DSR?
a. It applies to one firm, not many firms.
b. It is relatively more inelastic.
c. It indicates a reduced demand.
d. It is relatively more elastic.
Assume the demand for automobile tires is highly inelastic and that the supply is highly elastic. The burden of a $2 excise tax on each tire will be:
A. borne by resource suppliers that provide the inputs for manufacturing tires. B. shared about equally by buyers and sellers of tires. C. borne primarily by buyers of tires. D. borne primarily by sellers of tires.