Any target value of the nominal interest rate chosen by the Federal Reserve implies a specific value for:
A. potential output.
B. government purchases.
C. the budget deficit.
D. the money supply.
Answer: D
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Courtney goes for an hour bike ride which yields a marginal utility of 8. She stops and gets an ice cream cone, and then rides her bike for another hour. We can say:
A. the utility gained from a second ice cream cone was more than a second hour of bike riding. B. the utility gained from the ice cream was more than 8. C. the utility gained from the ice cream was less than the second hour of bike riding. D. the utility gained from a third hour of biking would be less than the utility gained from the one ice cream.
If a 20 percent decrease in the price of chicken results in a 10 percent increase in the quantity demanded, the price elasticity of demand has a value of
a. 0.5 b. 2 c. 1 d. 0.1 e. none of these
Although highly unlikely in the real world, in a perfectly balanced oligopoly with eight firms, the market share of each firm is
a. 16.2 percent b. 14.0 percent c. 13.5 percent d. 12.5 percent e. 8.0 percent
Suppose Qxd = 10,000 ? 2 Px + 3 Py ? 4.5M, where Px = $100, Py = $50, and M = $2,000. What is the own price elasticity of demand?
A. ?1.21 B. ?0.21 C. ?0.78 D. ?2.34