When a commercial bank borrows directly from the Fed, it pays
A) a zero rate of interest.
B) an interest rate called the federal funds rate.
C) an interest rate called the discount rate.
D) the Fed in a mutually agreed upon quantity of gold reserves in its vaults.
C
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If the U.S. population grew at a 0.9 percent during 2006 and real GDP grew at a 4.4 percent during the same period, what was the growth rate of real GDP per person?
A) 1.6 percent. B) 7.75 percent. C) 3.5 percent. D) 6 percent. E) 0 percent.
Evidence in favor the Keynesian model would be that:
a. investment is not sensitive to changes in tax rates. b. labor supply is inelastic. c. the aggregate price level is positively correlated with income. d. all of the above. e. none of the above.
Monetarists assume that suppliers of labor
a. always have perfect information about the real wage. b. base their decisions on the expected real wage. c. may or may not know the real wage. d. could not possibly have perfect information.
In long-run equilibrium, the perfectly competitive firm sets its price equal to which of the following?
a. Short-run marginal cost. b. Long-run average cost. c. All of the answers are correct. d. Short-run average total cost.