Your roommate is having trouble grasping how monetary policy works. Which of the following explanations could you use to correctly describe the mechanism by which the Fed can affect the economy through monetary policy? Increasing the money supply
A) causes people to spend more because they know prices will rise in the future.
B) lowers the interest rate, raises the value of the dollar, lowers the prices of exports, and raises net exports.
C) lowers the interest rate, and firms increase investment spending.
D) raises the interest rate and consumers decrease spending on durable goods.
C
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The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. What is the average total cost of producing 4,500 frijoles?
A) $2 B) $225 C) $9000 D) More information is needed to determine the answer.
Of the owners of the following firms, which does not have unlimited liability for the business' debts?
A) Roy Ray's Grocery Store, Roy Ray, proprietor B) the partnership of Reese and Jones, Attorneys-at-Law C) the Huber Corporation D) Wren's Feed and Seed Store, a proprietorship
If nothing else changes but the velocity of money doubles in the economy, the price level will decrease
Indicate whether the statement is true or false
If demand is estimated to be Qd = 240 - 6P, the marginal revenue function is
A. MR = 240 - 6P. B. MR = 240 - 2Q. C. MR = 240 - 12P. D. MR = 40 - 2P. E. MR = 40 - 0.33Q.