For most products, purchases tend to rise with increases in buyers' incomes, and to fall with decreases in buyers' incomes. Such products are known as:
a. Normal goods
b. Average goods
c. Inferior goods
d. Direct goods
a. Normal goods
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Use the following figure for the federal funds market to answer the next question.
If the Fed supplies $300 billion in reserves, the equilibrium federal funds rate is ________.
A. 5.0% B. 6.0% C. 5.5% D. Undeterminable with the information given.
If Y = $200 billion, c = 0.75, autonomous consumption = $10 billion, and T = $20 billion, induced consumption expenditure is
A) $135 billion. B) $200 billion. C) $180 billion. D) $150 billion.
Suppose milk and cereal are compliments and the demand for milk is Qdm = 40 - 6Pm - 2Pc, where Qdm stands for millions of gallons of milk demanded, Pm stands for the price of milk and Pc stands for the price of cereal. The supply of milk is Qsm = 6Pm - 8, where Qsm stands for millions of gallons of milk supplied. The demand and supply of cereal are Qdc = 90 - 5Pc - Pm and Qsc = 5Pc - 10, respectively, where Qdc stands for millions of boxes of cereal demanded and Qsc stands for millions of boxes of cereal supplied. Which of the following gives the market-clearing curve for milk?
A. Pm = 4 - (Pc/6) B. Pm = (32/12) - (Pc/6) C. Pm = (32 - 2Pc)/12 D. Pm = (32/12) + (Pc/6)
The employment-population ratio is
a. percentage of the population unemployed b. percentage of the population employed c. the same as the unemployment rate d. always greater than 1 e. percentage of the population employed by the private sector.