The impact lag is the time between putting a policy in place and when its effects are felt in the economy.
a. true
b. false
Ans: a. true
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Slope is calculated as the
A) change in the vertical variable. B) change in the vertical variable divided by the change in the horizontal variable. C) change in the horizontal variable divided by the change in the vertical variable. D) the vertical axis divided by the horizontal axis.
Assume you are holding Treasury securities and have sold futures to hedge against interest-rate risk. If interest rates rise
A) the increase in the value of the securities equals the decrease in the value of the futures contracts. B) the decrease in the value of the securities equals the increase in the value of the futures contracts. C) both the securities and the futures contracts decrease in value. D) both the securities and the futures contracts increase in value.
In the short run, perfectly competitive firms
a. always earn an economic profit b. never earn an economic profit c. always invest more in order to earn more d. never suffer an economic loss e. can earn an economic profit
A rightward shift of a demand curve is called a(n):
A. increase in demand. B. decrease in demand. C. increase in quantity demanded. D. decrease in quantity demanded.