Which of the following is inaccurate:
a. The monetary base rises only if the central bank's assets rise.
b. The monetary base rises if the central bank lowers the reserve ratio.
c. An increase in government spending does not affect the monetary base.
d. Foreign exchange transactions between domestic and foreign banks do not affect a nation's monetary base.
.B
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Which of the following is NOT necessary for a firm to engage in price discrimination?
A) The firm must be able to identify different types of buyers. B) The firm must be able to separate buyers by preventing resales from one customer to another. C) The firm must produce output for different buyers at different costs. D) The firm must sell a product that cannot be resold.
If a firm invests a lot in new employees, it is likely to
A) forward load compensation. B) pay all the costs of the new training. C) backload compensation. D) none of these choices.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.
One timing problem in using fiscal policy to counter a recession is the "recognition lag" that occurs between the
A. time the need for the fiscal action is recognized and the time that the action is taken. B. start of a predicted recession and the actual start of the recession. C. start of the recession and the time it takes to recognize that the recession has started. D. time fiscal action is taken and the time that the action has its effect on the economy.