Assuming all else equal, if the production technology available to a nation improves, its aggregate production function:
A) shifts inward. B) becomes vertical.
C) shifts upward. D) becomes horizontal.
C
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? In Figure 5-13, the slope of the budget line (dropping all minus signs) equals
A. price of good X/price of good Y. B. price of good Y/price of good X. C. the minimum number of units of good Y the consumer would have to receive to make him willing to give up one unit of good X. D. the minimum number of units of good X the consumer would have to receive to make him willing to give up one unit of good Y.
What is the meaning of the term "marginal rate of substitution"?
What will be an ideal response?
The interest-rate effect is partially explained by the fact that a higher price level reduces money demand
a. True b. False Indicate whether the statement is true or false
The defensive and offensive actions of the Fed differ because offensive actions are designed to:
A. change the current monetary policy while defensive actions are designed to reinforce the current monetary policy. B. reinforce the current monetary policy while defensive actions are designed to change the current monetary policy. C. tighten monetary policy and defensive actions are designed to ease monetary policy. D. ease monetary policy and defensive actions are designed to tighten monetary policy.