The Fed's goal is
a. moderate and stable inflation
b. zero inflation
c. a low price level
d. an inflation rate that diminishes over time
e. low and stable inflation
E
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As opportunity cost of holding money increases, people can
A) do nothing. B) increase the demand for money but not the quantity of money they hold. C) find a better job. D) try to maximize marginal benefit. E) seek substitutes for money.
The equilibrium price of a good sold in a competitive market is $10. If an individual firm decides to sell its product at a price higher than $10, ________
A) the firm's profits will increase B) the firm's revenue will increase C) the firm will lose all its consumers D) the firm's cost of production will decrease
The insight that patterns of trade are primarily determined by international differences in labor productivity was first proposed by
A) Adam Smith. B) David Hume. C) David Ricardo. D) Eli Heckscher. E) Lerner and Samuelson.
If the MPC = 0.75 for a particular person this means that:
A. they will spend 75 cents of each new dollar they get. B. if they receive $1 they want to spend roughly 75%, but probably won’t do so. C. they will spend 25 cents of the $1 and save 75 cents. D. if they receive $1 then they want to spend 25% of it.